On November 7, 2011, Ortez Company borrows $150,000 cash by signing a 90-day, 8% note payable with

Question:

On November 7, 2011, Ortez Company borrows $150,000 cash by signing a 90-day, 8% note payable with a of $150,000.
(1) Compute the accrued interest payable on December 31, 2011,
(2) Prepare the journal entry to record the accrued interest expense at December 31, 2011, and
(3) Prepare the journal entry to record payment of the note at maturity.

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...