4.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 atmaturity.Complete this question by entering your answers in the tabs below.Req 2 and 3Req 4What is the amount of interestexpense 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 1PrincipalRate (%)TimeTotal interestTotal throughmaturityInterest ExpenseCurrent Year 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 atmaturity.Complete this question by entering your answers in the tabs below.Req 1Req 2 and 3Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of the note atmaturity.Note: Use 360 days a year. Do not round intermediate calculations.View transaction list1Journal entry worksheetReq 423< Prev4 of 6⠀>Next >

The journal entries are prepared to record the transactions on a regular basis. The accrued interest…

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.

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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