Keesha Co. borrows $200,000 cash on November 1, 2017, by signing a 90-day, 9% note with a

Question:

Keesha Co. borrows $200,000 cash on November 1, 2017, by signing a 90-day, 9% note with a of $200,000.
1. On what date does this note mature?
2. How much interest expense results from this note in 2017? (Assume a 360-day year.)
3. How much interest expense results from this note in 2018? (Assume a 360-day year.)
4. Prepare journal entries to record
(a) Issuance of the note,
(b) Accrual of interest at the end of 2017,
(c) Payment of the note at maturity. (Assume no reversing entries are made.)
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...