On June 1, Chetney Company Ltd. borrows $60,000 from First Bank on a 6-onth, $60,000, 8% note.

Question:

On June 1, Chetney Company Ltd. borrows $60,000 from First Bank on a 6-onth,
$60,000, 8% note. The note matures on December 1.
Instructions
(a) Prepare the entry on June 1.
(b) Prepare the adjusting entry on June 30.
(c) Prepare the entry at (December 1), assuming monthly adjusting entries have been made through November 30.
(d) What was the total financing cost (interest expense)?

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...