Question

Keesha Co. borrows $235,000 cash on December 1 of the current year by signing a 90-day,...

Keesha Co. borrows $235,000 cash on December 1 of the current year by signing a 90-day, 9%, $235,000 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.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Organic Farmers Co-Op borrows $336,000 cash on October 1, 2018, by signing a 180-day, 15% note...
Organic Farmers Co-Op borrows $336,000 cash on October 1, 2018, by signing a 180-day, 15% note with a face value of $336,000. Required: 1. How much interest expense results from this note in 2018? 2. How much interest expense results from this note in 2019? 3. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest at the end of 2018, and (c) payment of the note at maturity. (Assume no reversing entries are made.)
Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1 Keesha Co. borrows $260,000 cash on...
Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1 Keesha Co. borrows $260,000 cash on December 1, 2017, by signing a 90-day, 12% note with a face value of $260,000. 1. On what date does this note mature? (Assume that February has 28 days) February 24, 2018. February 25, 2018. February 26, 2018. February 27, 2018. March 01, 2018. 2. & 3. What is the amount of interest expense in 2017 and 2018 from this note? (Use 360 days...
On November 7, 2017, Mura Company borrows $280,000 cash by signing a 90-day, 10% note payable...
On November 7, 2017, Mura Company borrows $280,000 cash by signing a 90-day, 10% note payable with a face value of $280,000. (Use 360 days a year. Do not round your intermediate calculations.) 1. Compute the accrued interest payable on December 31, 2017. 2. & 3. Prepare the journal entry to record the accrued interest expense at December 31, 2017 and payment of the note at maturity.
Your company borrows $80,000 cash on December 1, by signing a 120 day, 8% note, with...
Your company borrows $80,000 cash on December 1, by signing a 120 day, 8% note, with a face value of $80,000. Answer the following questions and record the transactions noted. Record the issuance of the note on December 1. Calculate and record the journal entry for interest required on December 31st. Record the payment of interest and principal at maturity.
Sylvestor Systems borrows $79,000 cash on May 15, 2016, by signing a 30-day, 6% note. 1....
Sylvestor Systems borrows $79,000 cash on May 15, 2016, by signing a 30-day, 6% note. 1. On what date does this note mature? June 13, 2016 June 14, 2016 June 15, 2016 June 16, 2016 June 17, 2016 2. Assume the face value of the note equals $79,000, the principal of the loan. (a) Prepare the journal entry to record issuance of the note. (b) First, complete the table below to calculate the interest expense at maturity. Use those calculated...
On January 1, Year 1 Hatcher Co. borrowed $150,000 cash by signing a 10% installment note...
On January 1, Year 1 Hatcher Co. borrowed $150,000 cash by signing a 10% installment note that is to be repaid with 3 annual year-end payments of $60,316, the first of which is due on December 31, Year 1. (a) Prepare the company's journal entry to record the note's issuance. Date Account Name Debit Credit (b) Prepare the journal entries to record the first and second installment payments. Hint: You will need to calculate interest expense and reduction to note...
On January 1, 2017, Eagle borrows $31,000 cash by signing a four-year, 8% installment note. The...
On January 1, 2017, Eagle borrows $31,000 cash by signing a four-year, 8% installment note. The note requires four equal payments of $9,360, consisting of accrued interest and principal on December 31 of each year from 2017 through 2020. Prepare the journal entries for Eagle to record the loan on January 1, 2017, and the four payments from December 31, 2017, through December 31, 2020.    No Date General Journal Debit Credit 1 Jan 01, 2017 Cash 31,000 31,000 2...
5. On May 1, Sea Crest, Inc. borrows $80,000 from the bank by signing a 6-month,...
5. On May 1, Sea Crest, Inc. borrows $80,000 from the bank by signing a 6-month, 12%, interest-      bearing note. Prepare the necessary entries below associated with the note payable on the books of      Sea Crest, Inc.: (a)       Prepare the entry on May 1 when the note was issued.             (b)       Prepare any adjusting entries necessary on May 31 in order to prepare the fiscal year ending          financial statements. (c)       Prepare the entry on November 1 to...
19. On September 1, 2019, Nile Company borrows $140,000 from Toronto State Bank by signing a...
19. On September 1, 2019, Nile Company borrows $140,000 from Toronto State Bank by signing a 7-month, 6%, interest-bearing note. Instructions: Prepare the necessary entries below associated with the note payable on the books of Nile Company. (a)    Prepare the entry on September 1, 2019, when the note was issued. (b)    Prepare the necessary adjusting journal entry at December 31, 2019. (c)    Prepare the entry to record payment of the note and interest at maturity on April 1, 2020.
Exercise 10-11 Installment note entries LO C1 On January 1, 2018, Eagle borrows $20,000 cash by...
Exercise 10-11 Installment note entries LO C1 On January 1, 2018, Eagle borrows $20,000 cash by signing a four-year, 7% installment note. The note requires four equal payments of $5,905, consisting of accrued interest and principal on December 31 of each year from 2018 through 2021. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided. Round your intermediate calculations and final answers to the nearest dollar amount. Round all table values to 4...