chapter 12 question 5

Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $560,000. The terms of the loan are 3.0% 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 Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $560,000. The terms of the loan are 3.0% 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