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Keesha Company borrows $120,000 cash on November 1 of the current year by signing a 180-day, 10%, $120,000 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.

Keesha Company borrows $120,000 cash on November 1 of the current year by signing a 180-day, 10%, $120,000 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.

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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Subject :- Accounting 

 

Keesha Company borrows $120,000 cash on November 1 of the current year by signing a 180-day, 10%, $120,000 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 2 and 3 Req 4 What is the amount of interest expense in the current year and the following year from this note? Note: Use 360 days a year. Do not round intermediate calculations and round final answers to the nearest whole dollar. Req 1 Principal Rate (%) Time Total interest Total through maturity Interest Expense Current Year <Rea 1 Interest Expense Following Year Reg 4 >
Transcribed Image Text:Keesha Company borrows $120,000 cash on November 1 of the current year by signing a 180-day, 10%, $120,000 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 2 and 3 Req 4 What is the amount of interest expense in the current year and the following year from this note? Note: Use 360 days a year. Do not round intermediate calculations and round final answers to the nearest whole dollar. Req 1 Principal Rate (%) Time Total interest Total through maturity Interest Expense Current Year <Rea 1 Interest Expense Following Year Reg 4 >
Keesha Company borrows $120,000 cash on November 1 of the current year by signing a 180-day, 10 %. $120,000 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. Note: Use 360 days a year. Do not round intermediate calculations. View transaction list 1 Journal entry worksheet Req 4 2 3 < Prev 4 of 6 ⠀ > Next >
Transcribed Image Text:Keesha Company borrows $120,000 cash on November 1 of the current year by signing a 180-day, 10 %. $120,000 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. Note: Use 360 days a year. Do not round intermediate calculations. View transaction list 1 Journal entry worksheet Req 4 2 3 < Prev 4 of 6 ⠀ > Next >
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