Saved 9 (6 AT SPTS) Keesha Co. borrows $150,000 cash on November 1,2017, by sign

Question

Saved 9 (6 AT SPTS) Keesha Co. borrows $150,000 cash on November 1,2017, by signing a 180-day, 10% note with a face value of $150,000 1. On what date does this note mature? (Assume that February has 28 days) 2 April 25,2018 April 26, 2018. Apri 27, 2018. April 28, 2018. Aprl 30, 2018 2.&3. What is the amount of interest expense in 2017 and 2018 from this nobe? (Use 360 days a year Round final answers to the nearest whole dollas) Hint InterestInterest through Expense Expense 2018 Total 150.000 150,000 Ran (%) 4.Pepore journaentnes to record-iasuance of the eme si accruale1 riserest "turty |Assume no reversing emies are made nbe 360 days ' ye. Dng round Intermediate at end of 2017, and peyment of the note at Journal entry worksheet Record the iss ance of the $150,900 note Note Eneer debts

Explanation / Answer

1 30 april 2018 is correct 2 Interest expense Total 2017 2018 Principal 150000 150000 150000 Rate 10% 10% 10% Time 180/360 60/360 120/360 Amount 7500 2500 5000 3 Cash 150000 01-Nov         Notes payable 150000 31-Dec Interest expense 2500          Interest payable 2500 30-Apr Interest expense 5000 Notes payable 150000 Interest payable 2500                Cash 157500

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