Sassy Inc has a 12 month 4 Note Payable with a face value of

Sassy, Inc. has a 12 month, 4% Note Payable with a face value of $150,000, dated December 1, 2010
On 12/1/2011, when Sassy Inc. pays the full amount of the note, the Interest Payable account has
a balance of $5,500. Please use the space provided below to record the journal entry on 12/1/2011
when the note is paid in full.

Sassy, Inc. has a 12 month, 4% Note Payable with a face value of $150,000, dated December 1, 2010
On 12/1/2011, when Sassy Inc. pays the full amount of the note, the Interest Payable account has
a balance of $5,500. Please use the space provided below to record the journal entry on 12/1/2011
when the note is paid in full.

On December 1 Sassy. Inc has a 12 month, 4% note payable face value of $150.000

> December1, 2010

Debit Credit

Cash 150,000

Notes Payable 150,000

Year end accural of interest

Intereste Expense (150,000 * 4% * 1/12) 500

Interest Payable 500

Now on 12th january, 2011

Repayment of note and interest

Notes Payable - 150,000$

Interest Payable - 500$

Interest Expense - (150000 * 4% * 12/360) = 200$

150,700 $

Now paying the full amount by having an interest payable amount of 5500$