I'm having trouble answering this question to satisfy the: Interest Expense (Debit)/Interest Payable (Credit) entries of my General Journal. This question has direct implications on successfuly closing the Interest Expense account.

The question is number 34, which references questions 4 and 7 respectively.

Please guide me to finding the correct numerical entries to make these entries make any sense.

The troubling questions pertaining to my journal are below:

#4. June 2: Check # 5002 was used to make a down payment of $35,000 on additional computer equipment that was purchased from Royce Computers, invoice number was 76542. The full price of the computer was $175,000. A five year note was executed for the balance.

#7. June 10: Check# 5003 was used to make a $26,750 payment reducing the principal owed on the June 2 purchase of computer equipment from Royce Computers.

#34. The note payable to Royce Computers (transactions 04 and 07) is a five-year note, with the interest at the rate of 12 percent annually. Interest expense should be computed based on a 360 day year.