On November 7, Mura Company borrows $160,000 cash by signing a 90-day, 8%, $160,000 note payable. 1. Compute the accrued interest payable on December 31. 2. & 3. Prepare the journal entries to record the accrued interest expense at December 31 and payment of the note at maturity on February 5. Complete this question by entering your answers in the tabs below. Req 1 No 1 Prepare the journal entries to record the accrued interest expense at December 31 and payment of the note at maturity on February 5. Note: Use 360 days a year. Do not round your intermediate calculations. General Journal 2 Req 2 and 3 Date X Answer is complete but not entirely correct. December 31 February 05 Interest expense Interest payable Notes payable Interest expense Interest payable Cash < Req 1 ›› ✓ ✓ Req 2 and 3 1,920 160,000 1,920 x 1,280 Credit 1,920 163,200

On November 7, Mura Company borrows $160,000 cash by signing a 90-day, 8%, $160,000 note payable. 1. Compute the accrued interest payable on December 31. 2. & 3. Prepare the journal entries to record the accrued interest expense at December 31 and payment of the note at maturity on February 5. Complete this question by entering your answers in the tabs below. Req 1 No 1 Prepare the journal entries to record the accrued interest expense at December 31 and payment of the note at maturity on February 5. Note: Use 360 days a year. Do not round your intermediate calculations. General Journal 2 Req 2 and 3 Date X Answer is complete but not entirely correct. December 31 February 05 Interest expense Interest payable Notes payable Interest expense Interest payable Cash < Req 1 ›› ✓ ✓ Req 2 and 3 1,920 160,000 1,920 x 1,280 Credit 1,920 163,200

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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