Business, 09.10.2019 16:20 atlasthegoat

Keesha co. borrows $200,000 cash on november 1, 2018, by signing a 90-day, 9% note with a face value of $200,000. 1. on what date does this note mature? 2. & 3. what is the amount of interest expense in 2018 and 2019 from this note? 4. prepare journal entries to record (a) issuance of the note, (b) accrual of interest at the end of 2018, and (c) payment of the note at maturity. (assume no reversing entries are made.)

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Answer from: ghostboy2001

Journal entry is the first step of the accounting process that includes the entries of every transaction taking place in the firm. All the cash outflow transactions are debited and all the cash inflow transactions are credited.

1. The note mature date is 30th January 2019.

( 29 days in November + 31 Days in December and 30 Days in January)

2. The interest expense would be on 2018:

$\begin{aligned}\text{Interest expense} &= \text{Principal} \times \text{rate of interest} \times\frac{\text{number of days}}{\text{total number of days in a year}} \\ &= \$200,000 \times 9\% \times \frac{60} {360} \\ &= \$3,000\end{aligned}$

( 29 days in November + 31 Days in December)

3. The interest expense would be on 2019:

(30 Days in January)

We assume 360 days in a year.

4. For journal entries refer to the image.

To know more about the journal entries and interest expense, refer to the link below:

link

Answer from: mmaglaya1

Explanation:

1. The maturing date of note will be 30 January 2019

( 29 days in November + 31 Days in December and 30 Days in January)

2. The interest expense would be

On 2018:

= Principal × rate of interest × number of days ÷ (total number of days in a year)

= $200,000 × 9% × (60 days ÷ 360 days)

= $3,000

( 29 days in November + 31 Days in December)

3. On 2019:

= Principal × rate of interest × number of days ÷ (total number of days in a year)

= $200,000 × 9% × (30 days ÷ 360 days)

= $1,500

(30 Days in January)

We assume 360 days in a year.

4. (A) Cash A/c Dr $200,000

To Notes payable A/c $200,000

(Being note is issued for cash)

(B) Interest expense A/c Dr $3,000

To Interest payable A/c $3,000

(Being accrued interest adjusted)

Interest payable A/c Dr $3,000

Notes payable A/c Dr $200,000

To Cash A/c $204,500\

(Being cash is paid on maturity)

Keesha co. borrows $200,000 cash on november 1, 2018, by signing a 90-day, 9% note with a face value

Answer from: Quest

the answer is d

explanation:

Answer from: Quest

1) i would probably get rid of my phone so i get extra money 2) it probably won’t because your would have to give up a lot but u need all the things u have3) your should probably not get the laptop and just save for college

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