Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

image text in transcribed

image text in transcribed

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

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

Accounting Principles

Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso

11th Edition

111856667X, 978-1118566671

More Books

Students also viewed these Accounting questions

Question

How should a researcher define a "completed interview"?

Answered: 1 week ago