June 2: Check # 5002 was used to make a down payment of $27,000.00 on additional computer equipment that was purchased from Royce Computers, invoice number 76542. The full price of the computer was $135,000.00. A five-year note was executed by Byte for the balance. June 2: Check # 5002 was used to make a down payment of $27,000.00 on additional computer equipment that was purchased from Royce Computers, invoice number 76542. The full price of the computer was $135,000.00. A five-year note was executed by Byte for the balance.

June 10: Check # 5003 was used to make a $20,750.00 payment reducing the principal owed on the June 2 purchase of computer equipment from Royce Computers. the note payable to Royce computers (transactions 04 and 07) is a five year note, with interest at the rate of 12 percent annually. interest expense should be computed based on a 360 day year