Journalize the following, assuming a 360-day year is used for interest calculations.

Apr. 30: Issued a $150,000, 30-day, 6% note dated April 30 to Misner Co. on account.

May 30: Paid Misner Co. the amount owed on the note dated April 30

Dr Accounts payable-Misner co $150,000

Cr notes payable $150,000

On maturity date:

Dr notes payable $150,000

Dr interest expense $75

Cr cash $150,750

Explanation:

On the date of issuance, the $150,000 being the face value of the note is debited to accounts payable account of Misner Co in the books of accounts of the issuing company and credited to notes payable account

On the date of maturity of the notes, interest of $750 is due ($150,000*6%*30/360).

The accounting entries on maturity of the notes payable is to debit the notes payable account with $150,000 as well as the interest expense account with $750 and the total of $150,750 ($150,000+$75) is credited to cash.