eesha Co. borrows $110,000 cash on December 1, 2017, by signing a 120-day, 8% note with a face value of $110,000. 1. On what date does this note mature? (Assume that February has 28 days)

• March 26, 2018.

• March 27, 2018.

• March 28, 2018.

• March 30, 2018.

• March 31, 2018.

2. & 3. What is the amount of interest expense in 2017 and 2018 from this note? (Use 360 days a year. Round final answers to the nearest whole dollar.) 4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest at the end of 2017, and (c) payment of the note at maturity. (Assume no reversing entries are made.) (Use 360 days a year. Do not round intermediate calculations.)

• 1

  Record the issuance of the $110,000 note.

• 2

  Record the interest accrued on the note as of December 31, 2017.

• 3

  Record payment of the note at maturity, assuming no reversing entries were made on January 1.