Question: Molly Merry s Accounting Firm purchased some property on December 31

Molly Merry’s Accounting Firm purchased some property on December 31, 2010, for $150,000, paying $30,000 in cash and obtaining a mortgage loan for the other $120,000. The interest rate is 12% per year, with $8,065 payments made at the end of March, June, September, and December 2011.
1. What amounts should appear as interest expense on the quarterly income statements and as liabilities on the quarterly balance sheets during 2011?
2. What amount of interest expense should appear on the 2011 year-end income statement?


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  • CreatedSeptember 01, 2014
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