"The following events/ transactions had been taken place in Donald company": a. "The beginning balance of the Supplies account was $245. During the month the company bought additional supplies in the amount of $735. At the end of the month a physical inventory showed $343 of unused supplies". b. "The company has a 12% Note Payable in the amount of $17,000 due in 6 months. The interest expense for the month has not been recorded". C. "The company has two employees. The manager is paid on the 15th of every month for work performed during the first half of the month and on the 1st of the following month for the work performed during the second half of the month. His monthly salary is $5,500. The other employee is paid $650 for each 5-day work week (Monday - Friday). The last day of the month fell on Thursday". d. "The unearned revenue account shows a balance of $46,000. According to the manager 60% of that amount has been earned". e. "At the end of the month $5,700 of services performed but not yet billed". "Prepare adjusting entries for the above transactions!"
Q: Johnson company’s financial year ended on December 31, 2010. All the transactions related to the…
A: Journal entry:-Way of recording any transaction of a company with debit and credit side. It works on…
Q: During the year ended December 31, 2018, Kelly’s Camera Shop had sales revenue of $170,000, of which…
A: Ending Allowance for Doubtful Accounts = Beginning Allowance for Doubtful Accounts + Bad debts…
Q: Milo Corp. opened Monday, June 1st with inventory of $50,000 and cash in the bank of $70,000. These…
A: A balance sheet seems more of a summary of a firm's financial condition at a specific moment, which…
Q: The year-end adjusted trial balance of the Timmons Tool and Die Corporation included the following…
A: Closing Entries: Closing entries are those journal entries that are passed to transfer the balances…
Q: The year-end adjusted trial balance of the Timmons Tool and Die Corporation included the following…
A: Closing Entries:Closing entries are those journal entries which are passed to transfer the balances…
Q: Beattie Inc. paid $3,600 for one year insurance effective January 1. The general ledger account…
A: Introduction: Journals: Each and every business transactions are to be recorded in Journals.…
Q: At the beginning of December, Global Corporation had $1,500 in supplies on hand. During the month,…
A: Supplies - Supplies are the small inventory company uses for production. These are not main…
Q: One Trick Pony (OTP) incorporated and began operations near the end of the year, resulting in the…
A: In perpetual inventory system, all adjustments like purchases, purchase returns, allowances are…
Q: anuary 15 Wrote of $440 account of Miller Company as uncollectible April 2nd Re-establish the…
A: Bad debts are the amount receivable by the business that is written off as it has become…
Q: Prepare journal entries for each transaction. Prepare the Allowance for Uncollectible and the…
A:
Q: Chai is required to maintain a minimum cash balance of $5,000 at the end of each month by the bank.…
A: The sales on the account mean the sale is done on a credit basis. the amount of the credit sales…
Q: Presented below is information related to Rizzo Company for its first month of operations. Credit…
A: Accounts payable refers to the sum of one's short-term obligations which are required to pay to the…
Q: As of January 1, Terrace Waters, Capital had a credit balance of $500,000. During the year,…
A: a.The balance of T's capital at the end of the year is calculated as follows:
Q: Assume that the aging of accounts receivable method was used by the company and that $7,050 of the…
A: Financial Accounting: It refers to the process of recording the financial transactions of the…
Q: The Accounts Payable account has a beginning balance of $11,900 and the company purchased $53,000 of…
A: Accounts payables are those accounts to whom amount is due to be paid on account of purchase of…
Q: The following transactions were completed by Daws Company during the current fiscal year ended…
A: Accounts receivable: It is a current asset of an organization. It is the amount due from customers…
Q: One Trick Pony (OTP) incorporated and began operations near the end of the year, resulting in the…
A: Definition: In a perpetual inventory system, all adjustments like purchases, purchase returns,…
Q: Johnson company’s financial year ended on December 31, 2010. All the transactions related to the…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Johnson company's financial year ended on December 31, 2010. All the transactions related to the…
A: It is the process of bifurcating the accounts receivable on the basis of the length of the time…
Q: During its first three months of operations, a company purchased supplies such as plates, napkins,…
A: Journal entry: It is also called as book of original entry. All financial transactions occurred in a…
Q: A company had the following transactions during the finst month of the year. Frepare an income slale…
A: Journal Entries - Journal Entries are recorded to enter transactions entered into by the company.…
Q: The following transactions were completed by Daws Company during the current fiscal year ended…
A: 1. Record the January 1 credit balance of $25,795 in a T account for Allowance for Doubtful…
Q: Johnson company’s financial year ended on December 31, 2010. All the transactions related to the…
A: The question requires : 1. Amount to be charged to uncollectible expense 2. Balance Sheet Extract to…
Q: Garcia Company had the following selected transactions during the year. (A partial chart of accounts…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: Prepare reversing entries for the following transactions: (a) The beginning balance of the…
A: The question is based on the concept of Financial Accounting.
Q: The ledger of Blue Spruce Corp. on March 31 of the current year includes the selected accounts below…
A: Adjusting entries are prepared at the end of the accounting period. It is also helpful to maintain…
Q: Yellow Company had a balance of $85,000 in Accounts Payable at the beginning of June, and purchased…
A: Opening accounts payable = $85,000 Purchases = $180,000 Closing accounts payable = $60,000
Q: Johnson company’s financial year ended on December 31, 2010. All the transactions related to the…
A: Journal enteries Date Particulars…
Q: The following information is available for M&M Johnson Inc.: The December 31, 2020, supplies…
A: Adjusting entry used by the entity for presenting a true financial statement of the entity. It…
Q: Johnson company's financial year ended on December 31, 2010. All the transactions related to the…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: 1, at the end of its first year of operations, were: Cash $ 19,500 Accounts Receivable 8,250…
A: In an accounting system, a journal entry is a record of a business transaction. Whenever a company…
Q: Prepare reversing entries for the following transactions: The beginning balance of the Supplies…
A:
Q: The balance in the supplies inventory account was $23,050 at the beginning of the year. During the…
A: When supplies are purchased, purchase value of added to supplies inventory account. Supplies expense…
Q: Johnson company’s financial year ended on December 31, 2010. All the transactions related to the…
A: Journal entry is as follows: Resultant table:
Q: The following information is available for M&M Johnson Inc.: The December 31, 2020, supplies…
A: Adjusting journal entry is the entry which is made at the end of the financial year to record the…
Q: At the end of October, the ABC Company needed to make accrual adjustments to the accounts, using the…
A: Workings:
Q: Johnson company’s financial year ended on December 31, 2010. All the transactions related to the…
A: Amount to be charged to uncollectible expense is shown in excel: Result is:
Q: Prepare the balance sheet extract as at Dec 31 to show the net realizable value for the Accounts…
A: Balance sheet: Balance sheet is defined as the financial statement of the company that records the…
Q: The following information is available for M&M Johnson Inc.: The December 31, 2020, supplies…
A: Journal entries: Date Account Journal Debit $ Credit $ 31-12-20 Inventory supplies expense…
Q: The following information is available for M&M Johnson Inc.: The December 31, 2020, supplies…
A: The adjustment entries are made to adjust the revenues and expenses of the current year.
Q: One Trick Pony (OTP) incorporated and began operations near the end of the year, resulting in the…
A: Prepare journal entry:
Q: At the end of the first year of operations, Gaur Manufacturing had gross accounts receivable of…
A: Estimated allowance for uncollectible accounts = 6% x $300,000 = $18,000
Q: Compute the amount of provision recorded in the income statement at year end.
A: Curent year provision to be recorded in the income statement at year end : = Current year Bad debt…
Q: The following information is available for M&M Johnson Inc.: The December 31, 2020, supplies…
A: Adjusting Entry – Adjusting Entries are the entries that make the accrual principle work for the…
Q: Using the data in the preceding question, what will the income statement for the year ended December…
A: Note receivable:Note receivable refers to a written promise by a debtor for the amounts to be…
Can you help me with this question please
Thank you
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought merchandise on account from Costa Products, invoice no. 7281D, 4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, 147 (total 5,001). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions for January using a sales journal, page 73; a purchases journal, page 56; a cash receipts journal, page 38; a cash payments journal, page 45; and a general journal, page 100. Assume the periodic inventory method is used. 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily those entries involving the Other Accounts columns and the general journal to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Add the columns of the special journals and prove the equality of the debit and credit totals. 6. Post the appropriate totals of the special journals to the general ledger. 7. Prepare a trial balance. 8. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought merchandise on account from Costa Products, invoice no. 7281D, 4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, 147 (total 5,001). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions in the general journal for January. If you are using Working Papers, start with page 1 in the journal. Assume the periodic inventory method is used. The chart of accounts is as follows: 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily the general journal entries to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Prepare a trial balance. 6. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?Prepare journal entries to record the following transactions that occurred in March: A. on first day of the month, purchased building for cash, $75,000 B. on fourth day of month, purchased inventory, on account, $6,875 C. on eleventh day of month, billed customer for services provided, $8,390 D. on nineteenth day of month, paid current month utility bill, $2,000 E. on last day of month, paid suppliers for previous purchases, $2,850
- Whole Leaves wants to upgrade their equipment, and on January 24 the company takes out a loan from the bank in the amount of $310,000. The terms of the loan are 6.5% annual interest rate, payable in three months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on February 24, and the entry for payment of the short-term note and final interest payment on April 24. Round to the nearest cent if required.The following accounts appear in the ledger of Celso and Company as of June 30, the end of this fiscal year. The data needed for the adjustments on June 30 are as follows: ab.Merchandise inventory, June 30, 54,600. c.Insurance expired for the year, 475. d.Depreciation for the year, 4,380. e.Accrued wages on June 30, 1,492. f.Supplies on hand at the end of the year, 100. Required 1. Prepare a work sheet for the fiscal year ended June 30. Ignore this step if using CLGL. 2. Prepare an income statement. 3. Prepare a statement of owners equity. No additional investments were made during the year. 4. Prepare a balance sheet. 5. Journalize the adjusting entries. 6. Journalize the closing entries. 7. Journalize the reversing entry as of July 1, for the wages that were accrued in the June adjusting entry. Check Figure Net income, 14,066Review the following transactions and prepare any necessary journal entries. A. On January 5, Bunnet Co. purchases 350 aprons (Supplies) at $25 per apron from a supplier, on credit. Terms of the purchase are 3/10, n/30 from the invoice date of January 5. B. On February 18, Melon Construction receives advance cash payment from a client for construction services in the amount of $20,000. Melon had yet to provide construction services as of February 18. C. On March 21, Noonan Smoothies sells 875 smoothies for $4 cash per smoothie. The sales tax rate is 6.5%. D. On June 7, Organic Methods paid a portion of their noncurrent note in the amount of $9,340 cash.
- If a customer owed your company $100 on the first day of the month, then purchased $200 of goods on credit on the fifth and paid you $50 on fifteenth, the customers ending balance for the month would show a (debit or credit) of how much?The following transactions were completed by Yang Restaurant Equipment during January, the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Yang Restaurant Equipment does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to Tri-County Management Company for monthly rent, 850. 2L. Yang, the owner, invested an additional 4,500 in the business. 4Bought merchandise on account from Valentine and Company, invoice no. A694, 2,830; terms 2/10, n/30; dated January 2. 4Received check from Velez Appliance for 980 in payment of invoice for 1,000 less discount. 4Sold merchandise on account to L. Parrish, invoice no. 6483, 755. 6Received check from Peck, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Frost and Son, in payment of invoice no. C127 for 600 less discount. 7Bought supplies on account from Dudley Office Supply, invoice no. 190B, 93.54; terms net 30 days. 7Sold merchandise on account to Ewing and Charles, invoice no. 6484, 1,115. 9Issued credit memo no. 43 to L. Parrish, 47, for merchandise returned. 11Cash sales for January 1 through January 10, 4,454.87. 11Issued Ck. No. 6983, 2,773.40, to Valentine and Company, in payment of 2,830 invoice less discount. 14Sold merchandise on account to Velez Appliance, invoice no. 6485, 2,100. 14Received check from L. Parrish, 693.84, in payment of 755 invoice, less return of 47 and less discount. Jan. 19Bought merchandise on account from Crawford Products, invoice no. 7281, 3,700; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to invoice, 142 (total 3,842). 21Issued Ck. No. 6984, 245, to A. Bautista for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 3,689. 23Received credit memo no. 163, 87, from Crawford Products for merchandise returned. 29Sold merchandise on account to Bradford Supply, invoice no. 6486, 1,697.20. 29Issued Ck. No. 6985 to Western Freight, 64, for freight charges on merchandise purchased January 4. 31Cash sales for January 21 through January 31, 3,862. 31Issued Ck. No. 6986, 65, to M. Pineda for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 5,899.95; employees federal income tax withheld, 795; FICA Social Security tax withheld, 365.80, FICA Medicare tax withheld, 85.50. 31Recorded the payroll taxes: FICA Social Security tax, 365.80; FICA Medicare tax, 85.50; state unemployment tax, 318.60; federal unemployment tax, 35.40. 31Issued Ck. No. 6987, 4,653.65, for salaries for the month. 31L. Yang, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions in the general journal for January. If you are using Working Papers, start with page 1 in the journal. Assume the periodic inventory method is used. The chart of accounts is as follows: 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily the general journal entries to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Prepare a trial balance. 6. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?The following transactions were completed by Yang Restaurant Equipment during January, the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Yang Restaurant Equipment does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to Tri-County Management Company for monthly rent, 850. 2L. Yang, the owner, invested an additional 4,500 in the business. 4Bought merchandise on account from Valentine and Company, invoice no. A694, 2,830; terms 2/10, n/30; dated January 2. 4Received check from Velez Appliance for 980 in payment of invoice for 1,000 less discount. 4Sold merchandise on account to L. Parrish, invoice no. 6483, 755. 6Received check from Peck, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Frost and Son, in payment of invoice no. C127 for 600 less discount. 7Bought supplies on account from Dudley Office Supply, invoice no. 190B, 93.54; terms net 30 days. 7Sold merchandise on account to Ewing and Charles, invoice no. 6484, 1,115. 9Issued credit memo no. 43 to L. Parrish, 47, for merchandise returned. 11Cash sales for January 1 through January 10, 4,454.87. 11Issued Ck. No. 6983, 2,773.40, to Valentine and Company, in payment of 2,830 invoice less discount. 14Sold merchandise on account to Velez Appliance, invoice no. 6485, 2,100. 14Received check from L. Parrish, 693.84, in payment of 755 invoice, less return of 47 and less discount. Jan. 19Bought merchandise on account from Crawford Products, invoice no. 7281, 3,700; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to invoice, 142 (total 3,842). 21Issued Ck. No. 6984, 245, to A. Bautista for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 3,689. 23Received credit memo no. 163, 87, from Crawford Products for merchandise returned. 29Sold merchandise on account to Bradford Supply, invoice no. 6486, 1,697.20. 29Issued Ck. No. 6985 to Western Freight, 64, for freight charges on merchandise purchased January 4. 31Cash sales for January 21 through January 31, 3,862. 31Issued Ck. No. 6986, 65, to M. Pineda for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 5,899.95; employees federal income tax withheld, 795; FICA Social Security tax withheld, 365.80, FICA Medicare tax withheld, 85.50. 31Recorded the payroll taxes: FICA Social Security tax, 365.80; FICA Medicare tax, 85.50; state unemployment tax, 318.60; federal unemployment tax, 35.40. 31Issued Ck. No. 6987, 4,653.65, for salaries for the month. 31L. Yang, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions for January using a sales journal, page 91; a purchases journal, page 74; a cash receipts journal, page 56; a cash payments journal, page 63; and a general journal, page 119. Assume the periodic inventory method is used. 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily those entries involving the Other Accounts columns and the general journal to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Add the columns of the special journals and prove the equality of the debit and credit totals. 6. Post the appropriate totals of the special journals to the general ledger. 7. Prepare a trial balance. 8. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?
- The trial balance of Jillson Company as of December 31, the end of its current fiscal year, is as follows: Here are the data for the adjustments. ab. Merchandise Inventory at December 31, 54,845.00. c. Store supplies inventory (on hand), 488.50. d. Insurance expired, 680. e. Salaries accrued, 692. f. Depreciation of store equipment, 3,760. Required Complete the work sheet after entering the account names and balances onto the work sheet.Reconstructing a Beginning Account Balance During the month, services performed for customers on account amounted to $7,500 and collections from customers in payment of their accounts totaled $6,000. At the end of the month, the Accounts Receivable account had a balance of $2,500. What was the Accounts Receivable balance at the beginning of the month?Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. 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. Round to the nearest cent if required.