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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
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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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 >
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 >
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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