December 31

Record the accrued interest expense.

Feb 05

Record the payment of note at maturity on February 5.

QS 9-5 (Algo) Interest-bearing note transactions LO P1 On November 7, Mura Company borrows $280,000 cash by signing a 90-day, 10\%, $280,000 note payable. 1. Compute the accrued interest payable on December 31 . 2. \& 3. Prepare the journal entries to record the accrued interest expense at December 31 and payment of the note at maturity or February 5. Complete this question by entering your answers in the tabs below