Keesha Company borrows $180,000 cash on November 1 of the current year by signing a 90-day, 10%, $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
Req 4
What is the amount of interest 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
Interest Expense
Current Year
Interest Expense
Following Year
Principal
Rate (%)
Time
Total interest
