Exerclse 9-4 Interest-bearlng notes payable with year-end adjustments LO P1Keesha Co. borrows $235,000 cash on November 1 of the current year by signing a 90-day, 11%. $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 atmaturity.X Answer is not complete.Complete this question by entering your answers in the tabs below.Req 1Reg 2 and 3Req 4Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of thenote at maturity. (Use 360 days a year. Do not round internmediate calculations.)NoTransactionGeneral JournalDebitCredit(a)Cash235,000 ONotes payable235,000 O(b)Interest expense4,308 OInterest payable4,308 O3(c)Interest payable2,154 XInterest expense4,308 XNotes payable235,000 OCash241,463 O( Reg 2 and 3Reg 4>

Keesha Co. borrows $235,000 cash on November 1 of the current year by signing a 90-day, 11%. $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.

Keesha Co. borrows $235,000 cash on November 1 of the current year by signing a 90-day, 11%. $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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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