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Keesha Co. borrows $ 200,000 cash on November 1, 2013, by signing a 90 day, 9% note with a face value of $ 200,000.
1. On what date does this note mature? (Assume that February of 2013 has 28 days.)
2. How much interest expense results from this note in 2013? (Assume a 360 day year.)
3. How much interest expense results from this note in 2014? (Assume a 360 day year.)
4. Prepare journal entries to record
(a) Issuance of the note,
(b) Accrual of interest at the end of 2013,
(c) Payment of the note at maturity.
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