On November 7, Mura Company borrows $270,000 cash by signing a 90-day, 10%, $270,000 note payable....

 

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On November 7, Mura Company borrows $270,000 cash by signing a 90-day, 10%, $270,000 note payable. 1. Compute the accrued interest payable on December 31. 2. & 3. Prepare the journal entries to record the accrued interest expense at December 31 and payment of the note at maturity on February 5. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Compute the accrued interest payable on December 31. Note: Use 360 days a year. Do not round your intermediate calculations. Principal x Rate (%) Time Total through maturity $ 270,000 10 % 90/360 Year end interest accrual $ 270,000 10 % 54/360 Interest recognized February 5 $ 270,000 10 % 36/360 $ = Interest 6,750 On November 7, Mura Company borrows $270,000 cash by signing a 90-day, 10%, $270,000 note payable. 1. Compute the accrued interest payable on December 31. 2. & 3. Prepare the journal entries to record the accrued interest expense at December 31 and payment of the note at maturity on February 5. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Compute the accrued interest payable on December 31. Note: Use 360 days a year. Do not round your intermediate calculations. Principal x Rate (%) Time Total through maturity $ 270,000 10 % 90/360 Year end interest accrual $ 270,000 10 % 54/360 Interest recognized February 5 $ 270,000 10 % 36/360 $ = Interest 6,750

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