Sylvestor Systems borrows $108,000 cash on May 15, 2015, by signing a 150-day, 7% note

Sylvestor Systems borrows $108,000 cash on May 15, 2015, by signing a 150-day, 7% note.

1.	On what date does this note mature?
	October 12, 2015

2.	Assume the face value of the note equals $108,000, the principal of the loan.

(a)	Prepare the journal entry to record issuance of the note.

(b)	First, complete the table below to calculate the interest expense at maturity. Use those calculated values to prepare your journal entry to record payment of the note at maturity. (Use 360 days a year. Do not round intermediate calculations.)

Explanation:

1.

Maturity date = May 15 + 150 days = October 12, 2015.