Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1Keesha Co. borrows $230,000 cash on November 1 of the current year by signing a 180-day, 7%, $230,000 note1. On what date does this note mature?2. & 3. What is the amount of interest expense in the current year and the following year from this note?4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of the note atmaturity.Complete this question by entering your answers in the tabs below.esReg 1Reg 2 and 3Reg 4On what date does this note mature? (Assume that Pebruary hac 28 days)On what date does this note mature?Rag 2 and 2Next> 4. Preparé Jourhal ehtries toTote, (D)maturity.Complete this question by entering your answers in the tabs below.okReg 1Reg 2 and 3Reg 4atWhat is the amount of interest expense in the current year and the following year from this note? (Use 360 days a year.Round final answers to the nearest whole dollar.)ntncesTotalthroughmaturityInterestExpenseCurrent YearInterestExpenseFollowingYearPrincipalRate (%)TimeTotal interest< Req 1K v bey

Answer 1) Calculation of maturity date of notes payable Maturity date of note = Issue date of note +…

Exercise 9-4 Interest-bearing notes payable with year-end adjustment Keesha Co. borrows $230,000 cash on November 1 of the current year by signing a 180-day, 7%, $230,000 note. 1. On what date does this note mature? 2. & 3. What is the amount of interest expense in the current year and the following year from this note? 4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of the note at maturity. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 and 3 Req 4 On what date does this note mature? (Assume that Pebruary hap 28 days On what date does this note mature? Rag 2 and 2

Exercise 9-4 Interest-bearing notes payable with year-end adjustment Keesha Co. borrows $230,000 cash on November 1 of the current year by signing a 180-day, 7%, $230,000 note. 1. On what date does this note mature? 2. & 3. What is the amount of interest expense in the current year and the following year from this note? 4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of the note at maturity. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 and 3 Req 4 On what date does this note mature? (Assume that Pebruary hap 28 days On what date does this note mature? Rag 2 and 2

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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