Jim and Jan borrowed $30,000 on a 7-month, 5% note from Ohio State Bank to open their business, JJs Meatball House. The money was borrowed on May 1, and the note matures December 1.

i. Prepare the accounting entry to record the receipt of cash on May 1.

ii. Prepare the entry to accrue the interest on May 30.

iii. Assuming adjusting entries are made at the end of each month, determine the balance in the interest payable account at November 30 (please use accounting equation format. You can use one row of the accounting equation to record the entry for each month's interest until you reach November 30). Enter this number in a cell, using an Excel formula, and highlight/label it.

iv. Prepare the entry required on December 1, when the loan is paid back.