On April 30, 2018, Seattle First National Bank loaned $100,000 to Pugliese Produce, Inc., on a one-year, 8 percent note.

Requirements

1. Compute the interest on the note for the years ended December 31, 2018, and December 31, 2019. Round interest calculations to the nearest dollar.

2. Which party has:

a. a note receivable?

b. a note payable?

c. interest revenue?

d. interest expense?

3. How much in total would Pugliese Produce, Inc., pay the bank if it pays off the note early on January 31, 2019?