Keesha Co, borrows $175,000 cash on December 1 of the current year by signing a 120-day, 12%,

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Keesha Co, borrows $175,000 cash on December 1 of the current year by signing a 120-day, 12%, $175,000 note.

1. On what date does this note mature?

2. & 3. What is the amount of interest expense in the current year and the following year from this note?

4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of the note at maturity.

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0324659139

11th edition

Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones

Posted Date: Jul 09, 2020 04:46 AM

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Keesha Co, borrows $175,000 cash on December 1 of the current year by signing a 120-day, 12%,

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1 120 days from Dec 1st ends on 31st March The note will mature on 31st March 2 3 I... View the full answer

Intermediate Accounting

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