The following items appear on the balance sheet of a company with a one-year operating cycle Identify the proper classification of each item as follows: Cif it is a current liability, Lif it is a long-term liability, or if it is not a liability Classification 1. Sales tres payable 2. FICA-Medicare Tees Payable 3. Pension liability to be paid to employees retiring in 2 to 5 years) 4. Salaries payable 5. FUTA taxes payable 6. Prepaid Insurance (6 months of coverage) 7. Employee Union Dues Payable 8. Bonus payable to be paid in 60 days) 9. Interest payable (due in 30 days) 10. Accounts payable (due in 30 days) Keesha Co. borrows $115,000 cash on December 1 of the current year by signing a 180 day, 10%, $115,000 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 not maturity Complete this question by entering your answers in the tabs below. Reg 4 Req1 Reg 2 and 3 On what date does this note mature? (Assume that February has 28 days) On what date does this note mature? & Reg Req 2 and 3 > Keesha Coborrows $115,000 cash on December 1 of the current year by signing a 180 day, 10% $115,000 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 maturity Complete this question by entering your answers in the tabs below. Reg1 Reg 2 and 3 Req+ 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 $115,000 cash on December 1 of the current year by signing a 180 day, 10%, $115,000 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 Reg 2 and 3 Reg 1 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 View journal entry worksheet No Transaction General Journal Debit Credit
