Hi, please help! please provide detail solution of how you get this number, than

Question

Hi, please help! please provide detail solution of how you get this number, thank you! I only need the solution for part b.

Exercise 13-2 (Part Level Submission) The following are selected 2017 transactions of Windsor Corporation. Sept. 1 Purchased inventory from Encino Company on account for $37,600. Windsor records purchases gross and uses a periodic inventory system Oct. 1 Issued a $37,600, 12-month, 8% note to Encino in payment of account. Oct.1 Borrowed $37,600 from the Shore Bank by signing a 12 month, zero interest-bearing $40,920 note. Your answer is correct. Prepare journal entries for the selected transactions above. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order displayed in the problem statement.) Date Account Titles and Explanation Debit Credit September 1 Purchases 37600 Accounts Payable 37600 October 1 Accounts Payable 37600 Notes Payable 37600 October 1 Cash 37600 Discount on Notes Payable 3320 Notes Payable 40920

Explanation / Answer

Answer to part b Date Accounts Title and Explanation Debit Credit Dec-31 Interest Expense (37600*8%*3/12) 752 Interest Payable 752 To record on interest on the notes (from October to December) Dec-31 Interest Expense 830 Discount on Notes Payable (3320*8%*3/12) 830 To record Discount on the notes (From October to December)

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