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Need help with the sections I got wrong. Thank you. Keesha Company borrows $180,000 cash on November 1 of the current year by signing a
Need help with the sections I got wrong. Thank you.
Keesha Company borrows $180,000 cash on November 1 of the current year by signing a 180-day, 9%, $180,000 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 Principal Rate (%) Time Total interest What is the Req 2 and 3 t expense in the current year and the following year from this note? Note: Use 360 days a year. Do not round intermediate calculations and round final answers to the nearest whole dollar. $ $ Total through maturity 180,000 9% Req 4 180/360 9,000 Answer is complete but not entirely correct. $ $ Interest Expense Current Year 180,000 9% 60/360 3,000 Keesha Company borrows $180,000 cash on November 1 of the current year by signing a 180-day, 9%, $180,000 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. No 1 Req 1 2 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. 3 Req 2 and 3 Transaction (a) (b) (c) X Answer is complete but not entirely correct. Req 4 Cash Notes payable Interest expense Interest payable Notes payable Interest expense Interest payable Cash General Journal Debit 180,000 3,000 X 180,000 3,000 X 6,000 X Credit 180,000 3,000 X 189,000 X
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