Keesha Co. borrows $200,000 cash on November 1 of the current year by signing a 90-day, 9%,

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Keesha Co. borrows $200,000 cash on November 1 of the current year by signing a 90-day, 9%, $200,000 note.

1. On what date does this note mature?

2. How much interest expense is recorded in the current year? (Assume a 360-day year.)

3. How much interest expense is recorded in the following year? (Assume a 360-day year.)

4. Prepare journal entries to record

(a) Issuance of the note,

(b) Accrual of interest on December 31,

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Financial Accounting Information For Decisions

ISBN: 9781260705584

10th Edition

Authors: John J. Wild

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Question Posted: Aug 23, 2021 08:02 AM

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Keesha Co. borrows $200,000 cash on November 1 of the current year by signing a 90-day, 9%,

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Solution 1 Note mature date 30 th january 2 interest expense on note in the ...View the full answer

Financial Accounting Information For Decisions

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