Keesha Co. borrows $200,000 cash on November 1, 2008, by signing a 90-day, 9% note with a face value of $200,000.

1 On what date does this note mature?

2 How much interest expense results from this note in 2008? (Assume a 360-day year.)

3 How much interest expense results from this note in 2009? (Assume a 360-day year.)

4 Prepare journal entries to record

(a) issuance of the note,

(b) accrual of interest at the end of 2008, and

(c) payment of the note at maturity.

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