exercise 11 - 5 (algo) interest - bearing notes payable with year - end adjustments lo p1\nkeesha company…

exercise 11 - 5 (algo) interest - bearing notes payable with year - end adjustments lo p1\nkeesha company borrows $120,000 cash on november 1 of the current year by signing a 180 - day, 7%, $120,000 note.\ncomplete this question by entering your answers in the tabs below.\nreq 1 req 2 and 3 req 4\nnote: assume that february has 28 days.\non what date does this note mature?

exercise 11 - 5 (algo) interest - bearing notes payable with year - end adjustments lo p1\nkeesha company borrows $120,000 cash on november 1 of the current year by signing a 180 - day, 7%, $120,000 note.\ncomplete this question by entering your answers in the tabs below.\nreq 1 req 2 and 3 req 4\nnote: assume that february has 28 days.\non what date does this note mature?

Answer

Explanation:

Step1: Calculate days in November

November has 30 days. Starting from November 1, there are 30 - 1=29 days in November for the note - term.

Step2: Calculate days in December

December has 31 days. So total days passed after December is 29 + 31=60 days.

Step3: Calculate days in January

January has 31 days. So total days passed after January is 60+31 = 91 days.

Step4: Calculate days in February

February has 28 days (as given). So total days passed after February is 91 + 28=119 days.

Step5: Calculate days in March

We need 180 - 119 = 61 more days. March has 31 days. After March, we have 119+31 = 150 days.

Step6: Calculate days in April

We still need 180 - 150=30 more days. So the note matures on April 29.

Answer:

April 29