Keshena Co. borrows $195,000 cash on December 1, 2009, by signing a 120-day, 11% note with a face value of $195,000.
On what date does this note mature? (February of 2010 has 28 days.)
How much interest expense results from this note in 2009? (Assume a 360-day year. Round your answer to the nearest dollar amount. Omit the "tiny_mce_markerquot; sign in your response.)
How much interest expense results from this note in 2010? (Assume a 360-day year. Round your answer to the nearest dollar amount. Omit the "tiny_mce_markerquot; sign in your response.)
Prepare journal entries to record the following (Round your answers to the nearest dollar amount. Omit the "tiny_mce_markerquot; sign in your response)
-Issuance of the note
-Accrual of interest at the end of 2009
-Payment of the note at maturity