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Answer in Accounting for Christina Henderson #104829

Author:
March 17th, 2023

Debit equipment credit current account, cash desk – $35,000 – equipment purchased

Debit other expenses credit loan calculations for loans: 574.58

“IC=Ctimes ifrac{Dm}{365}” = 35 000*0.1*31/365=297.26 -january 2018

“IC=Ctimes ifrac{Dm}{366}” = 35 000*0.1*29/366=277.32 – february 2019

IC – interest charges

C -credit

i – annual interest rate

Dm -number of days in a month

297.26+278.08=574.58

Debit loan calculations for loans credit balance of the note – 574.58 

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