PLEASE FILL OUT THE BLANKS AND EXPLAIN

August 1 1 1 6 8 20 The owners invested $100,000 in exchange for common stock. The company borrowed $20,000 from a local bank with a 9% note and a six-month term. Both the principal and interest will be repaid in six months. The company purchased computer equipment for $18,900 cash. It should last nine years, with no residual value. Supplies were purchased on account for $1,400. Office rent of $650 for August was paid in cash. The company received $3,500 from a customer for services to be performed in September. Consulting services performed during August on account totaled $12,800. The company paid salaries of $4,000 to employees. The company paid $1,000 to the supplies vendor as part of the $1,400 owed to the vendor from the purchase on August 6. The company only paid part of the invoice because it only used $1,000 worth of the supplies in August. 31 Ref. Date Accounts and Explanation Debit Credit A-2 ||Aug 31 || Interest expense..... .......................... Interest payable............................ .. To record interest due on note payable Debit Credit Prepare the entry to record depreciation expense for the month. Ref. Date Accounts and Explanation A-3 Aug 31 ||| Depreciation expense. ......... Accumulated depreciation .... To record depreciation expense for the month