Financial Accounting: Information for Decisions
8th Edition
ISBN: 9781259533006
Author: John J Wild
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 9, Problem 4E
Interest-bearing notes payable with year-end adjustments P1
Keesha Co. borrows $200,000 cash on November 1, 2016, b signing a 90-day, 9% note with a face value of $200,000.
- On what date does this note mature?
- How much interest expense results from this note in 2016? Assume a 360-day year.)
- How much interest expense results from this note in 2017? (Assume a 360-day year.)
- Prepare
journal entries to record (a) issuance of the note, (b) accrual of interest at the end of 2016, and (e) payment of the note at maturity. (Assume no reversing entries are made.)
Check (2) $3,000
Check (3) $1,500
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Chapter 9 Solutions
Financial Accounting: Information for Decisions
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