Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $680,000. The terms of the loan are 3.4% annual interest rate and payable in 8 months. Interest is due in equal payments each month.A. Compute the interest expense due each month. If required, round final answer to two decimal places.$fill in the blank f6a95d01507605c_1B. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. If required, round final answers to two decimal places. If an amount box does not require an entry, leave it blank.Oct. 20 fill in the blank 1acca4f97faa002_2fill in the blank 1acca4f97faa002_3 fill in the blank 1acca4f97faa002_5fill in the blank 1acca4f97faa002_6May 20 fill in the blank 1acca4f97faa002_8fill in the blank 1acca4f97faa002_9 fill in the blank 1acca4f97faa002_11fill in the blank 1acca4f97faa002_12 fill in the blank 1acca4f97faa002_14fill in the blank 1acca4f97faa002_15 Scrimiger Paints wants to upgrade its machinery and on September20 takes out a loan from the bank in the amount of $680,000. Theterms of the loan are 3.4% annual interest rate and payable in 8months. Interest is due in equal payments each month.A. Compute the interest expense due each month. If required,round final answer to two decimal places.B. Show the journal entry to recognize the interest payment onOctober 20, and the entry for payment of the short-term note andfinal interest payment on May 20. If required, round finalanswers to two decimal places. If an amount box does notrequire an entry, leave it blank.Oct. 20May 20

Given: Loan taken on Sep 20=$680000Annual interest rate =3.4% Payable in =8 months i.e. on May 20

Answered: Scrimiger Paints wants to upgrade its…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $680,000. The terms of the loan are 3.4% annual interest rate and payable in 8 months. Interest is due in equal payments each month.

A. Compute the interest expense due each month. If required, round final answer to two decimal places.

$fill in the blank f6a95d01507605c_1

B. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. If required, round final answers to two decimal places. If an amount box does not require an entry, leave it blank.

Oct. 20	fill in the blank 1acca4f97faa002_2	fill in the blank 1acca4f97faa002_3
	fill in the blank 1acca4f97faa002_5	fill in the blank 1acca4f97faa002_6
May 20	fill in the blank 1acca4f97faa002_8	fill in the blank 1acca4f97faa002_9
	fill in the blank 1acca4f97faa002_11	fill in the blank 1acca4f97faa002_12
	fill in the blank 1acca4f97faa002_14	fill in the blank 1acca4f97faa002_15

Scrimiger Paints wants to upgrade its machinery and on September
20 takes out a loan from the bank in the amount of $680,000. The
terms of the loan are 3.4% annual interest rate and payable in 8
months. Interest is due in equal payments each month.
A. Compute the interest expense due each month. If required,
round final answer to two decimal places.
B. Show the journal entry to recognize the interest payment on
October 20, and the entry for payment of the short-term note and
final interest payment on May 20. If required, round final
answers to two decimal places. If an amount box does not
require an entry, leave it blank.
Oct. 20
May 20

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