Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1 Keesha Co. borrows $170,000 cash on December 1 of the current year by signing a 90-day, 10%, $170,000 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 Req 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? Reg1 Req 2 and 3 > Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1 Keesha Co. borrows $170,000 cash on December 1 of the current year by signing a 90-day, 10%, $170,000 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. Req 1 Req 2 and 3 Req 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 Keesha Co. borrows $170,000 cash on December 1 of the current year by signing a 90-day, 10%, $170,000 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. Req 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 (c) payment of the note at maturity. (Use 360 days a year. Do not round intermediate calculations.) View transaction list Journal entry worksheet Record the issuance of the note on December 1. Note: Enter debits before credits. Transaction General Journal Debit Credit (a) 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.) View transaction list Journal entry worksheet Record the interest accrued on the note as of December 31, current year. Note: Enter debits before credits. General Journal Debit Credit Transaction (b) Record entry Clear entry View general journal Req 2 and 3 Reg4 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.) View transaction list Journal entry worksheet Record payment of the note at maturity, assuming no reversing entries were made on January 1. Note: Enter debits before credits. General Journal Debit Credit Transaction (c) Record entry Clear entry View general journal Req 2 and 3 Reg4
