Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1

Keesha Co. borrows $145,000 cash on December 1, 2017, by signing a 90-day, 10% note with a face value of $145,000.

1. On what date does this note mature? (Assume that February has 28 days) February 24, 2018. February 25, 2018. February 26, 2018 February 27, 2018. O March 01, 2018. 2. & 3. What is the amount of interest expense in 2017 and 2018 from this note? (Use 360 days a year. Round final answers to the nearest whole dollar.) Total throughInterest maturity Interest Expense 2017 Expense 2018 Principal Rate (%) Time Total interest 4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest at the end of 2017, and (c) payment of the note at maturity. (Assume no reversing entries are made.) (Use 360 days a year. Do not round intermediate calculations.) View transaction list Journal entry worksheet 2 Record the issuance of the $145,000 note. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 2 Record the interest accrued on the note as of December 31, 2017. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 2 3 Record payment of the note at maturity, assuming no reversing entries were made on January 1. Note: Enter debits before credits. Transaction General Journal Delitt Credit Record entry Clear entry View general journal