On August 1, 2020, Amy Industrial exchanged their past due
account payable to Wire Co. 
Homework Answers
Answer:
| DATE | ACCOUNT NAME | DEBIT | CREDIT |
| Aug 1,2020 | Accounts Payable Dr. | $96000 | |
| To 5% Note Payble | $96000 | ||
| Sep 30,2020 | Interest Expense Dr. | $800 | |
| To Interest Payable | $800 | ||
|
[($96000*5%)*60/360] taking 360 days in a year |
|||
| Jan 28,2021 | 5% Note Payable Dr. | $96000 | |
| Interest Payable Dr. | $800 | ||
| Interest Expense Dr. | $1600 | ||
| To Cash/Bank | $98400 | ||
|
(interest expense for remaning 120 days is {96000*5%}*120/360 ) |
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