A B C D E F G H 123 Given Information Answers: 4 Issue Date June 1 Year 1 5 Maturity Date March 1. Year 2 (a) Issue note Cash June 1, Year 1 100,000 6. Principal 100,000 Notes Payable 100,000 7 Rate 6% 8 (b) Interest Expense Number of months Interest 9 of interest in year expense 10 11 December 31, Year 1 March 1, Year 2 3,500 1,000 12 13 14 15 16 17 18 19 How would your answers change if the nine-month note had been issued on June 1 and was due the following March 1 (principal and interest remain the same)? (c) Accrue interest Interest Expense (d) Pay cash at maturity Notes Payable Interest Payable December 31, Year 1 3,500 Interest Payable 3,500 20 21 22 24 35 23 Insert a different amount in any of the blue cells in the given information to see alternative calculations. 3,500 $4,500 1,000 March 1, Year 2 100,000 Interest Expense Cash 104,500