Question - On September 1, 2007, Michelle, Inc. borrowed $200,000 from Citywide Bank and signed an 8%, one-year note payable, all due at maturity. The interest on this loan is stated separately.
(1) Calculate the "total amount due" at the maturity of this note.
(2) Calculate the interest expense to be recorded on this note for 2007 and for 2008.
(3) Provide the adjusting entry with respect to this note on December 31, 2007.
(4) Calculate the "total liability" to be reported with respect to this note as of December 31, 2007.