Exercise 9-5 (Algo) Interest-bearing notes payable with year-end adjustments LO P1 Keesha Company borrows $170,000 cash on November 1 of the current year by signing a 180-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.

Total through maturityInterest Expense Current YearInterest Expense Following YearPrincipal$170,000selected answer correct$170,000Rate (%)10%selected answer correct10%Time180/360selected answer correctnot attemptedTotal interest$8,500selected answer correctnot attempted

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. Note: Use 360 days a year. Do not round intermediate calculations