Keesha Co. borrows $200,000 cash on November 1, 2015, by signing a 90-day, 9% note with a face value of $200,000.
1. On what date does this note mature? (Assume that February of 2015 has 28 days.)
2. How much interest expense results from this note in 2015? (Assume a 360-day year.)
3. How much interest expense results from this note in 2016? (Assume a 360-day year.)
4. Prepare journal entries to record
(a) Issuance of the note,
(b) Accrual of interest at the end of 2015,
(c) Payment of the note at maturity. (Assume no reversing entries are made.)