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.
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.
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.
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
Transcribed Image Text: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
Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.
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