Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 9.4 Interest-bearing notes payable with year-end adjustments LO P1 Keesha Co, borrows $205.000 cash on November 1 of the current year by signing a

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Exercise 9.4 Interest-bearing notes payable with year-end adjustments LO P1 Keesha Co, borrows $205.000 cash on November 1 of the current year by signing a 120 day, 7%, $205.000 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, Complete this question by entering your answers in the tabs below. Reg 1 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 Req 2 and 3 > by entering your answers in the tabs below. Req 1 Req 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 ( Req1 Req 4 > LENS Toessori Closed x 2 My Library Brytewave e education.com/ext/map/index.html?_con=con&external browser=0&launchurl=https%253A%252F%252Fims.mb- work Saved Reg 1 Req 2 and 3 Reg 4 Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and maturity. (Use 360 days a year. Do not round Intermediate calculations.) View transaction list Journal entry worksheet -earch o C work Saved Reg 1 Req 2 and 3 Reg 4 Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and maturity. (Use 360 days a year. Do not round Intermediate calculations.) View transaction list Journal entry worksheet 1 2 3 > Record payment of the note at maturity, assuming no reversing entries were made on January 1. Note: Enter debits before credits. Transaction General Journal Debit Credit (c) Record entry Clear entry View general journal Praw 29 RA MAVH

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Study Guide Working Papers For College Accounting, Chapters 1-9

Authors: James A. Heintz, Robert W. Parry

23rd Edition

0357474740, 9780357474747

More Books

Students also viewed these Accounting questions

Question

What are key point Management Disclosure of the Sarbanes-Oxley Act?

Answered: 1 week ago