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  3. transaction 4 = 165,000 transaction 7 = 25,250

transaction 4 = 165,000 transaction 7 = 25,250 The note payable to...

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Finance

transaction 4 = 165,000 transaction 7 = 25,250 image
The note payable to Royce Computers (transactions 04 and 07) 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 $132,000.00. On June 10, eight days later, $25,250.00 was repaid. Interest expense must be calculated on the $132,000.00 for eight days. In addition, interest expense on the $106,750.00 balance of the loan (S132,000.00 less $25,250.00 = $106,750.00) must be calculated for the 20 days remaining in the month of June.]

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