Keesha Company borrows $240,000 cash on December 1 of the current year by signing a 120-day, 10%, $240,000 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.
Keesha Company borrows $240,000 cash on December 1 of the current year by signing a 120-day, 10%, $240,000 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Keesha Company borrows $240,000 cash on December 1 of the current year by signing a 120-day, 10 %, $240,000 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
No
1
2
Transaction
(a)
(b)
Req 4
View journal entry worksheet
Cash
Notes payable
Interest expense
General Journal
Debit
240,000
4,000
Credit
Check my work
240,000
Jenil](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F03986cfe-a8ee-4bbb-9ccf-16c9ed50ca8d%2Fd7e45c7d-9136-480a-b057-213e40b31450%2Ftsdoahq_processed.jpeg&w=3840&q=75)
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Book
Hint
Print
rences
Keesha Company borrows $240,000 cash on December 1 of the current year by signing a 120-day, 10 %, $240,000 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
No
1
2
Transaction
(a)
(b)
Req 4
View journal entry worksheet
Cash
Notes payable
Interest expense
General Journal
Debit
240,000
4,000
Credit
Check my work
240,000
Jenil
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