Jordan, Corp. completed the following transactions in 2015: Jan 1 Purchased a building costing $100,000 and signed
Question:
Jan 1 Purchased a building costing $100,000 and signed a 10-year, 10% mortgage note payable for the same amount.
Jun 30 Made the first semi-annual payment on the mortgage note payable.
Dec 1 Signed a five-year lease to rent a warehouse for $7,000 per month due at the end of each month. The lease is considered an operating lease.
31 Paid for one month's rent on the warehouse.
31 Made the second semi-annual payment on the mortgage note payable.
Requirements
1. Complete the following amortization schedule for the first four mortgage payments on the $100,000 mortgage note, assuming semi-annual payments of $8,024.
2. Record the journal entries for the 2015 transactions.
3. Prepare the long-term liabilities section of the statement of financial position on December 31, 2015.
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Related Book For
Financial Accounting
ISBN: 978-0133375534
2nd Canadian edition
Authors: Jeffrey Waybright, Robert Kemp, Sherif Elbarrad
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