Question - Keesha Co. borrows $140,000 cash on November 1, 2017, by signing a 180-day, 10% note with a face value of $140,000.
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. 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.)
3. 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.)