On November 7, 2017, Mura Company borrows $160,000 cash by signing a 90-day, 8%

Question

On November 7, 2017, Mura Company borrows $160,000 cash by signing a 90-day, 8% note payable with a face value of $160,000. (Use 360 days a year. Do not round your intermediate calculations.)

1. Compute the accrued interest payable on December 31, 2017

2. & 3. Prepare the journal entry to record the accrued interest expense at December 31, 2017 and payment of the note at maturity
Record the accrued interest expense.

2) Dec. 31, 2017

3) Feb 05, 2018

(ALL IM MISSING FOR THIS ONE IS THE AMOUNT OF $ CREDITED IN ACCOUNTS PAYABLE, ITS NOT $1,920 OR $3,200 OR 1,280)

Principal xRate (%) xTime =Interest Total Through Maturity 160,000 8 90/360 3,200 Year end interest accrual 160,000 8 54/360 1,920 Interest Recognized Feb. 5 160,000 8 4/360 1,280

Explanation / Answer

journal entries

date

explanation

debit

credit

31-Dec

interest expense

1920

accrued interest payable

1920

feb 5 2018

interest expense

1920

accrued interest payable

1280

notes payable

160000

cash

163200

journal entries

date

explanation

debit

credit

31-Dec

interest expense

1920

accrued interest payable

1920

feb 5 2018

interest expense

1920

accrued interest payable

1280

notes payable

160000

cash

163200

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