n what date does this note 3. What is the amount of interest expense in the current year and the following year from this note repare Journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, anc urity.
n what date does this note 3. What is the amount of interest expense in the current year and the following year from this note repare Journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, anc urity.
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
ChapterD: Notes Payable And Notes Receivable
Section: Chapter Questions
Problem 2P
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Question
![Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1
Keesha Co. borrows $230,000 cash on November 1 of the current year by signing a 180-day, 7%, $230,000 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
What is the amount of interest expense in the current year and the rollowing year from this note? (Use 360 days a year
Round final answers to the nearest whole dolar)
Total
through
maturity
Interost
Expense
Current Year
Expense
Fbllowing
Year
Principal
Rate (%)
Time
Total interest
< Req 1
Reg 4 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fecbe866e-97e8-4233-bded-027ab0fbabc5%2Fead55959-e2f9-4d21-a06a-de06573b0bd6%2Fx7k8ikg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1
Keesha Co. borrows $230,000 cash on November 1 of the current year by signing a 180-day, 7%, $230,000 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
What is the amount of interest expense in the current year and the rollowing year from this note? (Use 360 days a year
Round final answers to the nearest whole dolar)
Total
through
maturity
Interost
Expense
Current Year
Expense
Fbllowing
Year
Principal
Rate (%)
Time
Total interest
< Req 1
Reg 4 >
![Keesha Co. borrows $230,000 cash on November 1 of the current year by signing a 180-day, 7%, $230,000 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.
O Answer is not complete.
Complete this question by entering your answers in the tabs below.
Req 1
Reg 2 and 3
Reg 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. (Use360 days a year. Do not round intermediate calculations.)
No
Transaction
General Journal
Debit
Credit
230,000
1
(a)
Cash
230.000 O
Notes payable
2,728
(b)
Interest expense
2,728 8
Interest payable
230,000
2,728 3
3
(c)
Notes payable
Interest payable
5,322
Interest expense
< Prev
1 of 2
Next >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fecbe866e-97e8-4233-bded-027ab0fbabc5%2Fead55959-e2f9-4d21-a06a-de06573b0bd6%2F20daggi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Keesha Co. borrows $230,000 cash on November 1 of the current year by signing a 180-day, 7%, $230,000 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.
O Answer is not complete.
Complete this question by entering your answers in the tabs below.
Req 1
Reg 2 and 3
Reg 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. (Use360 days a year. Do not round intermediate calculations.)
No
Transaction
General Journal
Debit
Credit
230,000
1
(a)
Cash
230.000 O
Notes payable
2,728
(b)
Interest expense
2,728 8
Interest payable
230,000
2,728 3
3
(c)
Notes payable
Interest payable
5,322
Interest expense
< Prev
1 of 2
Next >
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