Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1 Keesha Co. borrows $300,000 cash on December 1 of the current year by signing a 150-day, 11% $300,000 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. Reg 1 Req 2 and 31 Req 4 What 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)
Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1 Keesha Co. borrows $300,000 cash on December 1 of the current year by signing a 150-day, 11% $300,000 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. Reg 1 Req 2 and 31 Req 4 What 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)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1
Keesha Co. borrows $300,000 cash on December 1 of the current year by signing a 150-day, 11% $300,000 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
ces
Complete this question by entering your answers in the tabs below,
Req 2 and 3
What 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)
Reg 1
Principal
Rate (%)
Time
Total interest
Req 1
View transaction list
<
Keesha Co. borrows $300,000 cash on December 1 of the current year by signing a 150-day, 11%, $300,000 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.
Total
through
maturity
Req 2 and 3
1
Journal entry worksheet
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. (Use 360 days a year. Do not round intermediate calculations.)
Req 1
2
Note: Enter debits before credits.
Transaction
(a)
<
Record the issuance of the note on December 1.
View transaction list
1
Req 4
Req 2 and 3
Req 1
Intere+
Expenis
Current Year
3
<
Transaction
(b)
Req 4
Complete this question by entering your answers in the tabs below.
Journal entry worksheet
2
Keesha Co, borrows $300,000 cash on December 1 of the current year by signing a 150-day, 11%, $300,000 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,
<Reg 1
View transaction list
Note: Enter debits before credits.
Reg 2 and 3
Interest
Expense
Following
Year
General Journal
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. (Use 360 days a year. Do not round Intermediate calculations.)
Transaction
&
2
Req 4
Reg 4 >
Record the interest accrued on the note as of December 31, current year.
General Journal
Journal entry worksheet
Note: Enter debits before credits
Debit
Req 4
Prov
Complete this question by entering your answers in the tabs below.
Seved
General Journal
Credit
1 of 2
Debit
Prev
Keesha Co, borrows $300,000 cash on December 1 of the current year by signing a 150-day, 11%, $300,000 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
Dobil
Prev
6
Record payment of the note at maturity, assuming no reversing entries were
made on January 1.
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. (Use 360 days a year. Do not round intermediate calculations.)
1 of 2
Credit
>
Credit
Next >
EE
1 of 2
>
Next >
Check
Next >
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