Keesha Company borrows $130,000 cash on December 1 of the current year by signing a 90-day, 11%, $130,000 note.
On what date does this note mature?
What is the amount of interest expense in the current year and the following year from this note?
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.
On what date does this note mature? (Assume that February has 28 days.)

On what date does this note mature?

a. 24-Feb

b. 25-Feb

c. 26. Feb.

d. 27 Feb

e. 1 March

Part B Req 2 and 3

Part C Req

Transcribed Image Text:

Principal Rate (%) Time Total interest Total through maturity $ 130,000 11% 120/360 Interest Expense Current Year 130,000 11% Interest Expense Following Year $ 130,000 11% Principal Rate (%) Time Total interest Total through maturity $ 130,000 11% 120/360 Interest Expense Current Year 130,000 11% Interest Expense Following Year $ 130,000 11%

Answer rating: 100% (QA)

Date of borrowing 1 Dec Days 90 days Date of maturity 1 March following year 2 Total through in... View the full answer