Question

Keshena Co. borrows $240,000 cash on November 1, 2009, by signing a 180-day, 10% notes with a face value of $240,000.
1. On what date does this note mature? (Assume February of 2010 has 28 days.)
2. How much interest expense results from this note in 2009? (Assume a 360-day year.)
3. How much interest expense results from this note in 2010? (Assume a 360-day year.)
4. Prepare journal entries to record.
(a) Issuance of the note.
(b) Accrual of interest at the end of 2009.
(c) Payment of the note at maturity.


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  • CreatedMarch 18, 2015
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