Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1 Keesha Co. borrows $230,000 cash on November 1 of the current year by signing a 120-day, 8%, $230,000 note. 1. On what date does this note mature? 2. & 3. What is the amount of interest expense in the current year and the following year from this note? 4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of the note maturity Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req1 Reg 2 and 3 Reg 4 On what date does this note mature? (Assume that February has 28 days) On what date does this note mature? March 01. K Reg Req 2 and 3 > Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1 Keesha Co. borrows $230,000 cash on November 1 of the current year by signing a 120-day, 8%, $230,000 note. 1. On what date does this note mature? 2. & 3. What is the amount of interest expense in the current year and the following year from this note? 4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of the note at maturity Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 and 3 Reg 4 What is the amount of interest expense in the current year and the following year from this note? (Use 360 days a year. Round final answers to the nearest whole dollar.) Total through maturity Interest Expense Current Year Interest Expense Following Year Principal Rate(%) Time Total interest $ 230.000 8% 120/360 $ 6,133 $ 230.000 8% 60/360 $ 3.067 $ 230,000 8% 1201360 X $ 6,133 X Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1 Keesha Co. borrows $230,000 cash on November 1 of the current year by signing a 120-day, 8%, $230,000 note. 1. On what date does this note mature? 2. & 3. What is the amount of interest expense in the current year and the following year from this note? 4. Prepare journal entries to record (a) issuance of the note. (b) accrual of interest on December 31, and (c) payment of the note at maturity Reg 2 and 3 Reg. eg Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of the note at maturity. (Use 360 days a year. Do not round intermediate calculations.) No Transaction General Journal Credit Debit 230,000 1 (a) Cash Notes payable 230,000 2 (b) 3,067 Interest expense Interest payable 3,067 3 (c) Notes payable Interest expense Interest payable OOOO 230,000 1,534 3,067 Cash 234,601 X