Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $550,000. The terms of the loan are 3.2% annual interest rate and payable in 8 months. Interest is due in equal payments each month.A. Compute the interest expense due each month. If required, round final answer to two decimal places.$fill in the blank 952ef7fa1025f8a_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 blankfill in the blank fill in the blankfill in the blankMay 20 fill in the blankfill in the blank fill in the blankfill in the blank fill in the blankfill in the blank Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank inthe amount of $550,000. The terms of the loan are 3.2% 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 decimalplaces.$4B. Show the journal entry to recognize the interest payment on October 20, and the entry for paymentof the short-term note and final interest payment on May 20. If required, round final answers totwo decimal places. If an amount box does not require an entry, leave it blank.Oct. 20May 20

Note Payable: Notes Payable are written agreements in which a party agrees to pay the other party a…

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 $550,000. The terms of the loan are 3.2% 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 952ef7fa1025f8a_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	fill in the blank
	fill in the blank	fill in the blank
May 20	fill in the blank	fill in the blank
	fill in the blank	fill in the blank
	fill in the blank	fill in the blank

Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in
the amount of $550,000. The terms of the loan are 3.2% 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.
$4
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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