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 $175.000 cash on November 1, 2017, by signing a 150-day, 12% note

image text in transcribed

Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1 Keesha Co. borrows $175.000 cash on November 1, 2017, by signing a 150-day, 12% note with a face value of $175.000. 1. On what date does this note mature? (Assume that February has 28 days) O March 26, 2018 O March 27, 2018 O March 28, 2018 O March 29, 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.) Total through maturity Interest Interest Expense 2017 Expense 2018 Principal Rate(%) Time Total interest 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.) View transaction list Journal entry worksheet Record the issuance of the $175,000

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

Using QuickBooks Accountant 2018 For Accounting

Authors: Glenn Owen

16th Edition

0357042085, 9780357042083

More Books

Students also viewed these Accounting questions

Question

=+4 How would you establish a control group?

Answered: 1 week ago

Question

Summarize the economic impact of safety.

Answered: 1 week ago

Question

Summarize the prevalence of unions.

Answered: 1 week ago