Keesha Company borrows $670,000 cash on December 1 of the current year by signing a 90-day,...
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Keesha Company borrows $670,000 cash on December 1 of the current year by signing a 90-day, 9%, $670,000 note. Note principal $670,000 Term of note Interest rate Days in year Issue date Year end Required: 1. On what date does this note mature? 2. & 3. What is the amount of interest expense in years 2024 and 2025 from this note? (Use 360 days in year) Date 12/1/2024 90 days 9% 360 2. Interest expense in 2024: 3. Interest expense in 2025: 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. General Journal Debit Credit 12/31/2024 12/1/2024 12/31/2024 1/0/1900 0.00 0.00 Keesha Company borrows $670,000 cash on December 1 of the current year by signing a 90-day, 9%, $670,000 note. Note principal $670,000 Term of note Interest rate Days in year Issue date Year end Required: 1. On what date does this note mature? 2. & 3. What is the amount of interest expense in years 2024 and 2025 from this note? (Use 360 days in year) Date 12/1/2024 90 days 9% 360 2. Interest expense in 2024: 3. Interest expense in 2025: 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. General Journal Debit Credit 12/31/2024 12/1/2024 12/31/2024 1/0/1900 0.00 0.00
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1 The note matures 90 days after December 1 Therefore the maturit... View the full answer
Related Book For
Financial Accounting Information For Decisions
ISBN: 9781260705584
10th Edition
Authors: John J. Wild
Posted Date:
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