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Keesha Co. borrows $275,000 cash on November 1 of the current year by signing a 120-day, 10%, $275,000 note. 1. On what date does this note mature? 2. & 3. What is the amount of interest expense in the current year and the following year from this note? 4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of the note at maturity.
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Keesha Co. borrows $275,000 cash on November 1 of the current year by signing a 120-day, 10%, $275,0...
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