Keesha Company borrows $200,000 cash on November 1 of the current year by signing a 90-day, 9%, $200,000 note. Required: 1. On what date does this note mature? (Use cells A2 to H6 from the given information to complete this question.) On what date does this note mature? Note Term (days) 90 $200,000 Issue Date 1-Nov 2. & 3. What is the amount of interest expense in the current year and the following year from this note? Year End 31-Dec Rate Days in year 360 9% Interest expense in current year Interest expense in following year 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 $200,000 cash on November 1 of the current year by signing a 90-day, 9%, $200,000 note. Required: 1. On what date does this note mature? (Use cells A2 to H6 from the given information to complete this question.) On what date does this note mature? Note Term (days) 90 $200,000 Issue Date 1-Nov 2. & 3. What is the amount of interest expense in the current year and the following year from this note? Year End 31-Dec Rate Days in year 360 9% Interest expense in current year Interest expense in following year 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.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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