On April 1, 2013, Ringo Company borrowed $20,000 from its bank by using a 9%, 12 month note, with the interest to be paid on the maturity date.

I need to know the amount of interest on the maturity date, the names of accounts the amount goes under, then I need to find the amounts and names for the reversing entry for the interest.

10,000

To find the amount of interest on the maturity date, we need to calculate the interest using the formula:

Interest = Principal x Interest Rate x Time

1. Calculate the interest amount:
Principal = $20,000
Interest Rate = 9% (expressed as a decimal: 0.09)
Time = 12 months

Interest = $20,000 x 0.09 x 1 year
Interest = $1,800

Therefore, the amount of interest on the maturity date is $1,800.

Next, let's discuss the names of accounts the amount goes under:

1. For the loan or note payable:
The initial borrowing of $20,000 from the bank will be recorded as a note or loan payable. This account represents the company's obligation to repay the borrowed amount. Therefore, we can name this account "Notes Payable."

2. For the interest expense:
The interest expense reflects the cost of borrowing the money, and it will be recorded as an expense on the income statement. We can name this account "Interest Expense."

Finally, we need to determine the amounts and names for the reversing entry for the interest.

A reversing entry is made at the beginning of the next accounting period to remove the accrual made in the prior period. In this case, since the interest is paid on the maturity date, there is no reversing entry required for the interest amount.

Therefore, there are no specific amounts or names needed for the reversing entry in this scenario.