Keesha Co. borrows $230,000 cash on December 1, 2017, by signing a 180-day, 10% note with...

Keesha Co. borrows $230,000 cash on December 1, 2017, by signing a 180-day, 10% note with a face value of $230,000.

1. On what date does this note mature? (Assume that February has 28 days)

May 25, 2018.

May 26, 2018.

May 27, 2018.

May 28, 2018.

May 30, 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 through maturity	Interest Expense 2017	Interest Expense 2018
Principal	$230,000	$230,000	$230,000
Rate (%)	10%	10%	10%
Time	180/360
Total interest	$11,500

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.)

No	Transaction	General Journal	Debit	Credit
1	(a)	Cash	230,000
		Notes payable		230,000

2	(b)

3	(c)

Expert Solution

ekkarill92 answered 1 year ago

Keesha Co. borrows $155,000 cash on November 1, 2017, by signing a 180-day, 11% note with...

Keesha Co. borrows $155,000 cash on November 1, 2017, by signing a 180-day, 11% note with a face value of $155,000. 1. On what date does this note mature? (Assume that February has 28 days) April 25, 2018. April 26, 2018. April 27, 2018. April 28, 2018. April 30, 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.)...

Keesha Co. borrows $225,000 cash on December 1 of the current year by signing a 180-day,...

Keesha Co. borrows $225,000 cash on December 1 of the current year by signing a 180-day, 10%, $225,000 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. Complete this question by entering your...

You company borrows $80,000 cash on December 1, by signing a 120 day, 8% note, with...

You company borrows $80,000 cash on December 1, by signing a 120 day, 8% note, with a face value of $80,000. Answer the following questions and record the transactions noted. Record the issuance of the note on December 1. Calculate and record the journal entry for interest required on December 31st. Record the payment of interest and principal at maturity.

Keesha Co. borrows $250,000 cash on December 1 of the current year by signing a 120-day,...

Keesha Co. borrows $250,000 cash on December 1 of the current year by signing a 120-day, 12%, $250,000 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.

Lola Co. borrows $120,000 cash on November 1, 2015, by signing a 90-day, 9% note with...

Lola Co. borrows $120,000 cash on November 1, 2015, by signing a 90-day, 9% note with a face value of $120,000. 1.) On what date does this note mature? 2.) How much interest expense results from this note in 2015? 3.) How much interest expense results from this note in 2016? 4.) Prepare journal entries to record (a) issuance of the note, (b) accrual of interest at the end of 2015, and (c) payment of the note at matutity.

Sylvestor Systems borrows $106,000 cash on May 15, 2017, by signing a 60-day, 4% note. 1....

Sylvestor Systems borrows $106,000 cash on May 15, 2017, by signing a 60-day, 4% note. 1. On what date does this note mature? 2. Assume the face value of the note equals $106,000, the principal of the loan. (a) Prepare the journal entry to record issuance of the note. (b) First, complete the table below to calculate the interest expense at maturity. Use those calculated values to prepare your journal entry to record payment of the note at maturity. (Use...

Sylvestor Systems borrows $110,000 cash on May 15, 2017, by signing a 60-day, 12% note.

Sylvestor Systems borrows $110,000 cash on May 15, 2017, by signing a 60-day, 12% note. 1. On what date does this note mature? 2. Suppose the face value of the note equals $110,000, the principal of the loan. Prepare the journal entries to record (a) issuance of the note and (b) payment of the note at maturity

XYZ Co. borrows $105,000 cash on November 1 of the current year by signing a 120-day,...

XYZ Co. borrows $105,000 cash on November 1 of the current year by signing a 120-day, 9%, $105,000 note. 1. On what date does this note mature? 1a. What is the amount of interest expense in the current year and the following year from this note? 1b. 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. 1. On what date does this note mature?...

On January 1, 2017, Eagle borrows $25,000 cash by signing a four-year, 7% installment note. The...

On January 1, 2017, Eagle borrows $25,000 cash by signing a four-year, 7% installment note. The note requires four equal payments of $7,381, consisting of accrued interest and principal on December 31 of each year from 2017 through 2020. (Round your intermediate calculations and final answers to the nearest dollar amount.) Prepare the journal entries for Eagle to record the loan on January 1, 2017, and the four payments from December 31, 2017, through December 31, 2020. Eagle borrows $25,000...

On January 1, 2017, Eagle borrows $16,000 cash by signing a four-year, 5% installment note. The...

On January 1, 2017, Eagle borrows $16,000 cash by signing a four-year, 5% installment note. The note requires four equal payments of $4,512, consisting of accrued interest and principal on December 31 of each year from 2017 through 2020. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided. Round your intermediate calculations and final answers to the nearest dollar amount. Round all table values to 4 decimal places, and use the rounded table...

Question