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Keesha Company borrows $115,000 cash on December 1 of the current year by signing a 150-day, 10%, $115,000 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 Req 4 Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) pa maturity. (Use 360 days a year. Do not round intermediate calculations.)

Keesha Company borrows $115,000 cash on December 1 of the current year by signing a 150-day, 10%, $115,000 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 Req 4 Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) pa maturity. (Use 360 days a year. Do not round intermediate calculations.)

FINANCIAL ACCOUNTING
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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52 01:48.39 Keesha Company borrows $115,000 cash on December 1 of the current year by signing a 150-day, 10%, $115,000 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. Req 1 Complete this question by entering your answers in the tabs below. Reg 1 Req 2 and 3 Show Transcribed Text 4 Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) pa maturity. (Use 360 days a year. Do not round intermediate calculations.) Req 4 Complete this question by entering your answers in the tabs below. Req 2 and 3 Req 4 On what date does this note mature? (Assume that February has 28 days.) On what date does this note mature? K Rog Req 2 and 3>
Transcribed Image Text:52 01:48.39 Keesha Company borrows $115,000 cash on December 1 of the current year by signing a 150-day, 10%, $115,000 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. Req 1 Complete this question by entering your answers in the tabs below. Reg 1 Req 2 and 3 Show Transcribed Text 4 Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) pa maturity. (Use 360 days a year. Do not round intermediate calculations.) Req 4 Complete this question by entering your answers in the tabs below. Req 2 and 3 Req 4 On what date does this note mature? (Assume that February has 28 days.) On what date does this note mature? K Rog Req 2 and 3>
Req 1 14702 Principal Rate (%) Time Total interest Req 2 and 3 What is the amount of interest expense in the current year and the following year from this note? (Use 360 day: not round intermediate calculations and round final answers to the nearest whole dollar.) Show Transcribed Text View transaction list Total through Interest Expense maturity Current Year Journal entry worksheet Transaction (a) Req 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. (Use 360 days a year. Do not round intermediate calculations.) 2 Note: Enter debits before credits. Record entry Record the issuance of the note on December 1. Show Transcribed Text < Req 1 General Journal Clear entry J Interest Expense Following Year Debit Req 4 > Credit View general journal
Transcribed Image Text:Req 1 14702 Principal Rate (%) Time Total interest Req 2 and 3 What is the amount of interest expense in the current year and the following year from this note? (Use 360 day: not round intermediate calculations and round final answers to the nearest whole dollar.) Show Transcribed Text View transaction list Total through Interest Expense maturity Current Year Journal entry worksheet Transaction (a) Req 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. (Use 360 days a year. Do not round intermediate calculations.) 2 Note: Enter debits before credits. Record entry Record the issuance of the note on December 1. Show Transcribed Text < Req 1 General Journal Clear entry J Interest Expense Following Year Debit Req 4 > Credit View general journal
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