Keesha Company borrows $140,000 cash on November 1 of the current year by signing a 120-day,...

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Keesha Company borrows $140,000 cash on November 1 of the current year by signing a 120-day, 10%, $140,000 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. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Req 4 On what date does this note mature? Note: Assume that February has 28 days. On what date does this note mature? Keesha Company borrows $140,000 cash on November 1 of the current year by signing a 120-day, 10%, $140,000 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. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Req 4 On what date does this note mature? Note: Assume that February has 28 days. On what date does this note mature?

Answer rating: 100% (QA)

Req 1 To determine the maturity date of the note we need to add 120 days to the date of borrowing wh... View the full answer