Assume that on December 1, 2011, a company receives a 90-day, 8 percent, $5,000 note and that

the company prepares financial statements monthly.

1. What is the maturity date of the note?

2. How much interest will be earned on the note if it is paid when due?

3. What is the maturity value of the note?

4. If the company's fiscal year ends on December 31, describe the adjusting entry that would be made, including the amount.

5. How much interest will be earned on this note in 2012?