1.An entry was made incorrectly recording the Note Payable interest and principal payments to the Other Accrued Liability account. The entryshould have been made toInterest Expense and the Notes Payable accounts. The loan has a monthly payment of $1001.61. The shop has paid $2,439 in interest and $5,565 in principal over the past eight months. (Total $8,004 paid)

A.The note was used to purchase a customer list. The asset will have a life of 10 years, and it should be amortized evenly over the 10-year period. You'll need to record the amortization.

On the spreadsheet I unlocked its showing $6,667 of total. How they got there?