Keesha Co. borrows $200,000 cash on November 1, 2008, by signing a 90-day, 9% note with a
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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.
AppendixLO1
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Related Book For
Financial Accounting Information For Decisions
ISBN: 9780073043753
4th Edition
Authors: John J. Wild
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