Keesha Co. borrows $170,000 cash on November 1, 2017, by signing a 90-day, 12% note with a face value of $170,000

Keesha Co. borrows $170,000 cash on November 1, 2017, by signing a 90-day, 12% note with a face value of $170,000.

1. On what date does this note mature? (Assume that February has 28 days)

• 
  

  January 30, 2018. 

2. & 3. What is the amount of interest expense in 2017 and 2018 from this note? (Use 360 days a year. Round final answers to the nearest whole dollar.)

4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest at the end of 2017, and (c) payment of the note at maturity. (Assume no reversing entries are made.) (Use 360 days a year. Do not round intermediate calculations.)

No	Transaction	General Journal	Debit	Credit
1	(a)	Cashselected answer correct	170,000selected answer correct	not attempted
		Notes payableselected answer correct	not attempted	170,000selected answer correct
2	(b)	Interest expenseselected answer correct	3,400selected answer correct	not attempted
		Interest payableselected answer correct	not attempted	3,400selected answer correct
3	(c)	Interest expenseselected answer correct	1,700selected answer correct	not attempted
		Interest payableselected answer correct	3,400selected answer correct	not attempted
		Notes payableselected answer correct	170,000selected answer correct	not attempted
		Cashselected answer correct	not attempted	175,100