Question: Bay Front Co. receives $240,000 when it issues a $240,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2012.

Bay Front Co. receives $240,000 when it issues a $240,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2012. The terms provide for semiannual installment payments of $20,000 on June 30 and December 31.
Instructions
Prepare the journal entries to record the mortgage loan and the first two installment payments.

Step by Step Solution

★★★★★

3.35 Rating (173 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

2012 Issuance of Note Dec 31 Cash 240000 Mortgage Payable 24000... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

54-B-A-L (607).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

A policymaker is deciding how to finance the construction of a new airport. He can either-pay for it by increasing citizens taxes or by-printing more money. What are some of the short-run and...

A policymaker is deciding how to finance the construction of a new airport. He can either pay for it by increasing citizens taxes or by printing more money. What are some of the short-run and...

Jernigan Co. receives 240,000 when it issues a 240,000, 6%, mortgage note payable to fi nance the construction of a building at December 31, 2017. The terms provide for annual installment payments of...

Sheridan Company receives $348,000 when it issues a $348,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2025. The terms provide for annual installment...

Pharoah Company receives $270,000 when it issues a $270,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2022. The terms provide for annual installment...

Boercise 10-20 (Part Level Submission) Boom Company receives $240,000 when Issues a $240,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2007. The terms...

Marigold Corp. receives $224,400 when it issues a $224,400, 10% mortgage note payable to finance the construction of a building at December 31, 2022. The terms provide for annual installment payments...

Answer Part C only, Part A and B are answered Sunland Company receives $354,000 when it issues a $354,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2022....

Sheridan Company receives $204,000 when it issues a $204,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2020. The terms provide for annual installment...

Crane Company receives $246,000 when it issues a $246,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2022. The terms provide for annual installment payments...

A solution of sulfuric acid contains 28.99% by mass of H,SO, and has a density of 1.21 g/mL. What is the molarity of H,SO, in this solution?

1. Discuss the transactional and transformational leadership of Gary Kelly. 2. How does Gary Kellys leadership reinforce Southwest Airlines organizational culture? Southwest Airlines remains one of...

Express the series below as a rational function. n = 0 1 ( x - 3 ) 8 n - 6

You are required to perform all necessary computation work on most recent financial statements. Examples of your analysis are: 1 Horizontal analysis (5 years) 2 Vertical analysis (5 years) 3. Ratio...

The topic is creating a website about Healthy lifestyle( which will include menu nutrition, exercise, advice of qualified trainers)| i. What key activities does your value proposition require? ii....

Let's examine Minnesota Mining and Manufacturing (otherwise known as 3M) Company's financial information, which can be found by accessing 3Ms main front page (http://www.mmm.com) and selecting the...

Melissa created an irrevocable trust using investment assets worth $300,000. The rate for calculating split gifts was 4%. Melissas friend Murray, age 50, will receive all the income, payable annually...

Which description best fits Andrews? For clarity: - A differentiator competes through good designs, high awareness, and easy accessibility. - A cost leader competes on price by reducing costs and...

a. Account for the factors that affect Australia's trade intensity. (10 marks) b . Account for the emergence of China as Australia's main trading partner. (10 marks)

Blanco Metal Company produces the steel wire that goes into the production of paper clips. In 2010, the first year of operations, Blanco produced 50,000 miles of wire and sold 45,000 miles. In 2011,...

Gagliano Company has decided to introduce a new product. The new product can be manufactured by either a capital-intensive method or a labor-intensive method. The manufacturing method will not affect...

The condensed income statement for the Terri and Jerri partnership for 2010 is as follows. A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 50% of the selling...

This information relates to Ivanhoe Co. 1. 2. 3. 4 On April 5, purchased merchandise from Pharoah Company for $24.200 on account. On April 7. purchased equipment on account for $25,800. On April 8,...

It says "Mark owns a 20% interest in a partnership (not real estate) in which his at-risk amount is $44000 at the beginning of the year. During the year, the partnership borrows $90000 on a recoursw...

QUESTIONS Vrterest id or accrued during 2018 on regate quistion deteness of million or enim formare persone con is deductible wrate de interest QUESTIONS