Answer:
the requirements are missing, so I looked for similar questions:
1) determine the maturity date of the investments
2) determine the interest due at maturity
1) maturity dates of the notes:
note Locust NBR bank
note issued on May 19 July 8
term of note 90 days 120 days
maturity date August 17 Nov. 5
2) interest due at maturity
Locust note = $35,000 x 8% x 90/360 = $700
NBR bank note = $63,000 x 10% x 120/360 = $2,100
the journal entries should be:
August 17, 202x, note paid to Locust
Dr Notes payable 35,000
Dr Interest expense 700
Cr Cash 35,700
November 5, 202x, note paid to NBR Bank
Dr Notes payable 63,000
Dr Interest expense 2,100
Cr Cash 65,100
