Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1 Keesha Co borrows $250,000 cash on December 1 of the current year by signing a 180-day, 12%, $250,000 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. Reg 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 Expenso Following Year Principal Rate(%) Time Total interest $ 250,000 12% 180/360 1,000 $ 250,000 $ 250,000 12% 12% 180/360 3 180/360 5,000 5,000 Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1 Keesha Co. borrows $250,000 cash on December 1 of the current year by signing a 180-day, 12%, $250,000 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 Prepare fournal 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 Debit Credit 1 (a) Cash 250,000 Notes payable 250,000 9 2 (b) 5,000 Interest expense Interest payable 5,000 3 (c) Notes payable Interest payable Interest expense Cash OO 250,000 5,000 5,000 $ 260,000