On June 30, Year 7, Apple Company, which prepares monthly financial statements, acquired from Bee Company for 500,000 yen a machine with life of 5 yrs and no residual value. To pay Bee Company, Apple Company borrowed 500,000 yen from Soy Bank (in China) on a 12%, 60 day note. Apple Company acquired a 510,000 yen draft to York Bank (in the U.S.) on August 29, Year 7 to pay the maturity value of the note to Soy Bank. Relevant exchange rates for the yen were as follows:

Buying rate Selling Rate

June 30, Yr 7................$0.0081 $0.0084

July 31, Yr 7.................$0.0080 $0.0082

August 29, Yr 7............$0.0082 $0.0085

REQUIRED: Prepare journal entries (including explanations for Apple Company on June 30, July 31 and August 29, Yr 7 including interest accrual and depreciation of the machine. use 30 day months for July and August interest.