Questions:

1.Journal entry to record the first instalment due on bank loan

2. Adjusting entries to record the interest expense on the bank loan

Description You contributed $20,000 cash into your business. You also borrowed $15,000 from Bankwest. This bank loan is a 2-year secured business loan, with an interest rate of 6% per annum, and monthly repayments of $540. The first instalment is due on 25 September 2022 (2 marks)