Transaction 4: June 2 Check #5002 was used to make a down payment of 32,000 on additional computer equipment that was purchased from royce computers, invoice number 76542. The full price of the computer was 160,000. A five year note was executed by Byte for the balance.

Transaction 8: June 10 Check #5003 was used to make a 24,500 payment reducing the principal owed on computer purchased.

The note payable (transaction 4 &8) is a five year note, with interest at the rate of 12% annually. Interest expense should be computed based on a 360 day year.

(IMPORTANT NOTE: the original note on the computer equipment purchased on june 2 was 128,000. on june 10 eight days later, 24500 was repaid. Interest expense must be calculated on the 128000 for eight days. In addition interest expense on the 103,500. balance of the loan must be calculated for the 20 days remaining in the month of june.