Keesha Company borrows $110,000 cash on November 1 of the current year by signing a 90-day, 9%, $110,000 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 Principal Rate (%) Time What is the amount of interest expense in the current year and the following year from this note? (Use 360 days a year. Do not round intermediate calculations and round final answers to the nearest whole dollar.) Req 2 and 3 otal interest Req 4 Total through Interest Expense maturity Current Year Interest Expense Following Year
Keesha Company borrows $110,000 cash on November 1 of the current year by signing a 90-day, 9%, $110,000 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 Principal Rate (%) Time What is the amount of interest expense in the current year and the following year from this note? (Use 360 days a year. Do not round intermediate calculations and round final answers to the nearest whole dollar.) Req 2 and 3 otal interest Req 4 Total through Interest Expense maturity Current Year Interest Expense Following Year
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.6AP
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Keesha Company borrows $110,000 cash on November 1 of the current year by signing a 90-day,9%, $110,000 note
Transcribed Image Text:Exercise 9-5 (Algo) Interest-bearing notes payable with year-end adjustments LO P1
Keesha Company borrows $110,000 cash on November 1 of the current year by signing a 90-day, 9%, $110,000 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
Req 2 and 3
Principal
Rate (%)
Time
Total interest
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. Do
not round intermediate calculations and round final answers to the nearest whole dollar.)
Total through Interest Expense
maturity
Current Year
< Req 1
Interest Expense
Following Year
Req 4 >
Transcribed Image Text:Exercise 9-5 (Algo) Interest-bearing notes payable with year-end adjustments LO P1
Keesha Company borrows $110,000 cash on November 1 of the current year by signing a 90-day, 9%, $110,000 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
Req 2 and 3
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.)
View transaction list
<
Journal entry worksheet
1
Req 4
2
3
Record payment of the note at maturity, assuming no reversing entries were
made on January 1.
4
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