Paiscik, Corp., completed the following transactions in 2012:
Jan 1 Purchased a building costing $180,000 and signed an 11%, 30-year mortgage note payable for the same amount.
Jun 30 Made the first semiannual payment on the mortgage note payable.
Dec 1 Signed a five-year lease to rent a warehouse for $12,000 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 Leased 10 copiers and signed a four-year lease with the option to buy the copiers at the end of the fourth year at a bargain price. Under terms of the lease, monthly lease payments do not start until January 31, 2014. The present value of the lease payments is $33,000.
31 Made the second semiannual payment on the mortgage note payable.

Requirements
1. C omplete the following amortization schedule for the first four mortgage payments on the $1 80,000 mortgage note, assuming semiannual payments of $1 3,077. Round amounts to the nearest dollar.

2. Record the journal entries for the 201 2 transactions.
3. Prepare the long-term liabilities section of the balance sheet on December 31 , 2012.

Transcribed Image Text:

Payment Interest |Principal Loan Balance Date Jan 1, 2012 Jun 30, 2012 Dec 31, 2012 Jun 30, 2013 Dec 31, 2013 $180,000 $13,077