Question: On May 1 5 , 2 0 2 2 , Powell Incorporated obtained a six - month working capital loan from its bank. The face

On May 15,2022, Powell Incorporated obtained a six-month working capital loan from its bank. The face amount of the
note signed by the treasurer was $157,800. The interest rate charged by the bank was 7.50%. The bank made the loan on
a discount basis.
a-2. Use the horizontal model to show the effect of signing the note and the receipt of the cash proceeds on May 15,2022. Indicate
the financial statement effect.
On May 15,2022, Powell Incorporated obtained a six-month working capital loan

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