Exercise 9 4 Interest Bearing Notes Payable With Year End Adjustments Lo P1 Keesha Co Borrows 240 000 Cash On December 1 (31.93 KiB) Viewed 2507 times
Exercise 9 4 Interest Bearing Notes Payable With Year End Adjustments Lo P1 Keesha Co Borrows 240 000 Cash On December 2 (31.75 KiB) Viewed 2507 times
Exercise 9.4 Interest-bearing notes payable with year-end adjustments LO P1 Keesha Co borrows $240,000 cash on December 1 of the current year by signing a 180-day, 11%, $240,000 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 ook Complete this question by entering your answers in the tabs below. int int Req1 Reg 2 and 3 Reg4 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) rences Total through maturity Interest Expense Current Year Interest Expense Following Year 11% 11% Principal Rate(%) Time Total interest 11% 180/360 150/360 ( Req1 Req 4 >
2 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 th note at maturity Complete this question by entering your answers in the tabs below. Reg 1 Req 2 and 3 Book Reg 4 Hin 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 lit Vlow journal entry workshot Print No Transaction () General Journal Debit Credit 1 Cash Notes payable 245.000 Preferences 2 (b) Interest expense Interest payable / 3 (c) Interest expense Notes payable < Req 2 and 3
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!