Complete accrued interest payable and journal entry 1-2 Dec 31 please and thank you 1-record the accrued interest expense2-record the payment of note at maturity on February 5th **Interest-bearing Note Transactions**In this example, Mura Company borrows $160,000 in cash by signing a 90-day, 9%, $160,000 note payable on November 7.### Requirements1. **Compute the Accrued Interest Payable on December 31.** Use a 360-day year for calculations. Do not round your intermediate calculations.2. & 3. **Prepare Journal Entries:** - To record the accrued interest expense at December 31. - For payment of the note at maturity on February 5.### Table: Interest Calculation**Columns:**- **Principal**- **Rate (%)**- **Time**- **Interest****Rows:**- **Total Through Maturity:** Computes full interest from issuance to maturity.- **Year End Interest Accrual:** Calculates interest accrued by December 31.- **Interest Recognized February 5:** Determines remaining interest until note maturity.Complete these calculations by entering the appropriate values in each section, considering the given rate and timeframe. This exercise provides practice in calculating interest accruals and preparing corresponding journal entries.

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Complete accrued interest payable and journal entry 1-2 Dec 31 please and thank you

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Complete accrued interest payable and journal entry 1-2 Dec 31 please and thank you

1-record the accrued interest expense

2-record the payment of note at maturity on February 5th

**Interest-bearing Note Transactions**

In this example, Mura Company borrows $160,000 in cash by signing a 90-day, 9%, $160,000 note payable on November 7.

### Requirements

1. **Compute the Accrued Interest Payable on December 31.**
Use a 360-day year for calculations. Do not round your intermediate calculations.

2. & 3. **Prepare Journal Entries:**
- To record the accrued interest expense at December 31.
- For payment of the note at maturity on February 5.

### Table: Interest Calculation

**Columns:**
- **Principal**
- **Rate (%)**
- **Time**
- **Interest**

**Rows:**
- **Total Through Maturity:** Computes full interest from issuance to maturity.
- **Year End Interest Accrual:** Calculates interest accrued by December 31.
- **Interest Recognized February 5:** Determines remaining interest until note maturity.

Complete these calculations by entering the appropriate values in each section, considering the given rate and timeframe. This exercise provides practice in calculating interest accruals and preparing corresponding journal entries.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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