Tucker boats purchased boat moving equipment, office furniture, and boat repair machinery. Tucker Boats paid 6,880 in cash and signed a four-year, 9.6%, $20,000 installment note payable to first national bank. Equal monthly principal and interest payments of 503.42 are due the 5th of each month, beginning october 6. (the note assumes a 360-day year and 30 days of interest charged for each full month. Months with 31 days accrue only 30 days of interest, but so does september. The date the loan is signed bears interest. interest is accrued to the nearest penny.

The answers I have are correct, but I need to know why/how the formulas are used to find the answers.

depreciation expense and acc. depreciation- 26880/96 (why is it over 96?)

interest expense and accrued interest payable - ((20,000 x .096)/12 = 160 x 25/30)

notes payable and current maturities of long-term debt - 20,000/4

If you could just tell me the names of the values in the equations that would be great. I have the answers, just trying to understand them.

example : 26,880 is the total amount agreed upon for the equipment, furniture, and machinery.

96 is (?)