interest expense and cash answers only (answers marked as wrong)

Brief Exercise 8-38 (Algorithmic) Notes Payable Renchen Company, which manufactures steel tubing and casing for automobile production, borrowed $696,000 on January 1 to finance the purchase of a new piece machinery with new heating technology. The terms of Renchen's note dictate that it is a 4-month, 12%, Interest-bearing note. Required: 1. Record the borrowing transaction Jan. 1 Cash Notes Payable (Record issuance of note payable) 696,000 696,000 Feedback Check My Wom 1. On the date of the borrowing transaction, the company received the money from the bank and has an obligation to pay the money back with interest in the future 2. Record the repayment transaction. If an amount box does not require an entry, leave it blank May 1 Notes Payable 696,000 Interest Expense 38.760 X Cash 735,760 X (Record payment of interest and principal) Feedback Check My Work 2. To repay the loan, the borrower must repay the princioal with interest Next