Staven Company sells a seasonal product. Each year, it needs additional cash in order to stock up on inventory before its season begins. On May 1, 2010, Staven Company borrows money from its bank by signing a 11-month, 6% note for $94,000. The interest and principal are due at maturity. Calculate interest based on number of months rather than days. If required, round your answers to the nearest cent.

Assume that the note above is due on the last day of the month that the note is outstanding. Record all entries connected with signing the note, accruing interest on December 31, and paying the note on its maturity date. If required, round your answers to the nearest cent. Note: To avoid rounding errors, calculate interest based on number of months rather than days. Then calculate interest expense for 2011 as [Total interest Interest expense accrued in 2010].

If an amount box does not require an entry, leave it blank or enter "0".

DOC. POST NO. REF DATE ACCOUNT TITLE DEBIT CREDIT 1 2010 May 1 4 Dec 31 65 6 7 2011 Mar 31 94000 8 10 10