Keesha Company borrows $150,000 cash on December 1 of the current year by signing a 180-day,...
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Keesha Company borrows $150,000 cash on December 1 of the current year by signing a 180-day, 8 %, $150,000 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. Keesha Company borrows $150,000 cash on December 1 of the current year by signing a 180-day, 8 %, $150,000 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.
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1 On what date does this note mature The note is for 180 days So counting 180 day... View the full answer
Related Book For
Financial Accounting Information For Decisions
ISBN: 9781260705584
10th Edition
Authors: John J. Wild
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