1. Fully amortizing installment note payable On October 31, 2009, Seldon Company incurs a 30-year (360...
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1. Fully amortizing installment note payable On October 31, 2009, Seldon Company incurs a 30-year (360 months) $600,000 mortgage liability. This mortgage is payable in equal monthly installments of $6,485, which include interest at an annual rate of 12%. The first monthly payment is made on November 30, 2009. Complete the amortization table for the first two payments by entering the correct dollar amounts in the blank spaces provided. In addition, answer the questions which follow. Payment Monthly Interest Date Payment Expense Issuance Nov. 30 Dec. 31 $6,485 $ $6,485 $ --- Repayment of Principal $ $ --- Unpaid Balance $600,000 $ $ $ With respect to this mortgage (loan), Seldon's 2009 income statement includes interest expense of __and Seldon's balance sheet at December 31, 2009, includes a total liability for this mortgage of _. (Do not separate into current and long-term portions.) The total monthly cash payments Seldon will make over the 30-year life of the mortgage amount to $ Over the 2-year life of the note, the amount Ronald will pay for interest amounts to $ 1. Fully amortizing installment note payable On October 31, 2009, Seldon Company incurs a 30-year (360 months) $600,000 mortgage liability. This mortgage is payable in equal monthly installments of $6,485, which include interest at an annual rate of 12%. The first monthly payment is made on November 30, 2009. Complete the amortization table for the first two payments by entering the correct dollar amounts in the blank spaces provided. In addition, answer the questions which follow. Payment Monthly Interest Date Payment Expense Issuance Nov. 30 Dec. 31 $6,485 $ $6,485 $ --- Repayment of Principal $ $ --- Unpaid Balance $600,000 $ $ $ With respect to this mortgage (loan), Seldon's 2009 income statement includes interest expense of __and Seldon's balance sheet at December 31, 2009, includes a total liability for this mortgage of _. (Do not separate into current and long-term portions.) The total monthly cash payments Seldon will make over the 30-year life of the mortgage amount to $ Over the 2-year life of the note, the amount Ronald will pay for interest amounts to $
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Mortgage liability 600000 Term month 360 Principal paid in first month Mortgage liability Term 60000... View the full answer
Related Book For
Fundamentals of Financial Management
ISBN: 9780273713630
13th Revised edition
Authors: James van Horne, John Wachowicz
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