On January 2, each company issued 3,200 sillk'es of capital stock for $160,000 and commenced operations. -~ 2. January 2, each company...

I'm working on the "home heaters, a holistic view of financial statements" case (I'm sure you've heard of it...)

I'm having difficulty on figuring out the interest questions, ex:

A) On January 2, each company borrowed $400,00- on a 20 year, 7% note payable, interest plus 20,000 principle due in September 30, each year. 

B)On September 30, the first 20,000 principal payment plus nine month's interest was made on the NP from A)

C)Management made an adjusting entry to accuse three months interest on the NP in A and B.

Can you help me with with the journal entries/amounts would be? I'm a little unsure of the rates/simple/compound/etc.

Also if a "company" is started with issuing 3,200 shares of capital stock for 160,000 and then later pays dividends of $7.25 per share, will I have 4 entries: DB - Retained earnings and Dividends payable and CR to Dividends Payable and Cash? (date it is announced vs. date paid)

I'd appreciate any help you could give! (I've attached the questions if you need any more detail).

Marv