Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

تمرين 52

Keesha Co. borrows $200,000 cash on November 1, 2015, by signing a 90-day, 9% note with a face value of $200,000.
1. On what date does this note mature (Assume that February of 2015 has 28 days.)
2. How much interest expense results from this note in 2015 (Assume a 360-day year.)
3. How much interest expense results from this note in 2016 (Assume a 360-day year.)
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 maturity. (Assume no reversing entries are made.)