ACCT 2101-The note payable relating to the June 2,
The note payable relating to the June 2,and 10 transactions is a five-year note, with interest at the rate of 12 percent 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, $24,500 was repaid.Interest expense must be calculated on the $128,000 for eight days.In addition, interest expense on the $103,500 balance of the loan ($128,000 less $24,500 = $103,500) must be calculated for the 20 days remaining in the month of June.]
