Keesha Co. borrows $275,000 cash on November 1, 2015, by signing a 150-day, 10% note with a face value of $275,000.
On what date does this note mature? Assume a 365 day year
What is the amount of interest expense in 2015 and 2016 from this note? (Use 360 days a year. Do not round intermediate calculations.)
Prepare journal entries to record (a) issuance of the note, (b) accrual of interest at the end of 2015, and (c) payment of the note at maturity. (Use 360 days a year. Do not round intermediate calculations.)
Record the issuance of the $275,000 note
Record the interest accrued on the note as of December 31, 2015.
Record payment of the note at maturity, assuming no reversing entries were made on January 1.