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Keesha Co. borrows $240,000 cash on December 1, 2017, by signing a 180-day, 9% note with a face value of $240,000. 1. On what date
Keesha Co. borrows $240,000 cash on December 1, 2017, by signing a 180-day, 9% note with a face value of $240,000. 1. On what date does this note mature? (Assume that February has 28 days) May 25, 2018 May 26, 2018 May 27, 2018. May 28, 2018 May 30, 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 throughInterest maturity Interest Expense 2017 Expense 2018 Principa Rate 1%) Time Total interest S 240,000$240,000240,000 9% 150/360 9,000 99% 9% 180/360 30/360 $ 0,800 $ 1,800 $ 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.)
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