Solution-How much interest expense results

How much interest expense results

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Reference no: EM13901862

Keesha Co. borrows $ 200,000 cash on November 1, 2013, 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 2013 has 28 days.)

2. How much interest expense results from this note in 2013? (Assume a 360 day year.)

3. How much interest expense results from this note in 2014? (Assume a 360 day year.)

4. Prepare journal entries to record

(a) Issuance of the note,

(b) Accrual of interest at the end of 2013,

Reference no: EM13901862

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How much interest expense results

Reference no: EM13901862

Reference no: EM13901862

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