Question

QS 9-4 Interest-bearing note transactions LO P1 On November 7, Mura Company borrows $370,000 cash by signing a 90-day, 8%, $370,000 note payable 1. Compute the accrued interest payable on December 31 2. & 3. Prepare the journal entry to record the accrued interest expense at December 31 and payment of the note at maturity on February 5. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 and 3 Compute the accrued interest payable on December 31. (Use 360 days a year. Do not round your intermediate calculations.) Principal X Rate(%) x Time - Interest Total through maturity Year end interest accrual Interest recognized February 5 % % Req 2 and 3 >

Answer 1

Requirement to Ratelo 8 Time 90/360 Interert 7400 Particulars Principal Total through 370,000 maturity Year and interst 370,000 Accrual mtererk reedinice 370,000 Febs 8 54/360 4,440 84 36/360 2,960. Journal entries a Accrued mterest Expense Dec 31. Interest Expenses afc --- to Accrued mterent alc tbóng mterert Accrued) DY 4,440 $ 4,440$ b. Payment of note at maturity Febos Accrued Interest AC ---- DV 4,440 Interest Expense ofC ---Dr 9,960 Nole payable dlc --- Dr 370,000 TO cash nic 377,400 t being payment of Interits Notepayable]