Scrimiger Paints wants to upgrade its machinery and onSeptember 20 takes out a loan from the bank in theamount of $630,000. The terms of the loan are 3.0%annual interest rate and payable in 8 months. Interest isdue in equal payments each month.A. Compute the interest expense due each month. Ifrequired, round final answer to two decimal places.B. Show the journal entry to recognize the interestpayment on October 20, and the entry for payment of theshort-term note and final interest payment on May 20. Ifrequired, round final answers to two decimal places.If an amount box does not require an entry, leave it blank.Oct. 20May 20Accounts PayableAccounts ReceivableCashInterest ExpenseShort-Term Notes Payable

Interest: Interest is an amount that is paid by the borrower on the use of that borrowed money. In…

Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $630,000. The terms of the loan are 3.0% annual interest rate and payable in 8 months. Interest is due in equal payments each month. A. Compute the interest expense due each month. If required, round final answer to two decimal places. $1 B. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. If required, round final answers to two decimal places. If an amount box does not require an entry, leave it blank.

Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $630,000. The terms of the loan are 3.0% annual interest rate and payable in 8 months. Interest is due in equal payments each month. A. Compute the interest expense due each month. If required, round final answer to two decimal places. $1 B. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. If required, round final answers to two decimal places. If an amount box does not require an entry, leave it blank.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 12EA: Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank...

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