Acc225 Fundamental of Accounting Principles: E11-5 Keshena Co. borrows $105,000 cash

Acc225 Fundamental of Accounting Principles
E11-5
Keshena Co. borrows $105,000 cash on December 1, 2009, by signing a 90-day, 8% note with a face value of $105,000.

1. On what date does this note mature? (February of 2010 has 28 days.)
2. 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 "$" sign in your response.)
3. How much interest expense results from this note in 2010? (Assume a 360-day year. Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)
4. Prepare journal entries to record the following (Round your answers to the nearest dollar amount. Omit the "$" sign in your response):
a. Issuance of the note
b. Accrual of interest at the end of 2009
c. Payment of the note at maturity
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