Question: 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.

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 €33,264 on December 31.

Instructions

Prepare the journal entries to record the mortgage loan and the first two payments.

Step by Step Solution

★★★★★

3.36 Rating (174 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

2017 Issuance of Note Dec 31 Cash 240000 Mortgage Payable 2400... 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)

1210-B-C-A-T-A(1350).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!

The 0.5-kg cylinder A is released from rest from the position shown and drops the distance h 1 = 0.6 m. It then collides with the 0.4-kg block B; the coefficient of restitution is e = 0.8. Determine...

Jernigan Co. receives $300,000 when it issues a $300,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2019. The terms provide for annual installment payments...

Leoni Co. receives $240,000 when it issues a $240,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2010. The terms provide for semiannual installment payments...

Kitov Co. receives $280,000 when it issues a $280,000, 6%, mortgage note payable to finance the construction of a building at December 31, 2012. The terms provide for semiannual installment payments...

E 1 1 . 7 ( LO 3 ) Jernigan Co . receives 2 4 0 , 0 0 0 when it issues a 2 4 0 , 0 0 0 , 6 % , mortgage note payable to finance the construction of a building at December 3 1 , 2 0 2 0 . The terms...

Jernigan Co . receives $ 3 0 0 , 0 0 0 when it issues a $ 3 0 0 , 0 0 0 , 1 0 % mortgage note payable to finance the construction of a building at December 3 1 , 2 0 2 0 . The terms provide for...

Oriole Co . receives $ 2 0 6 , 0 0 0 when it issues a $ 2 0 6 , 0 0 0 , 1 0 % , mortgage note payable to finance the construction of a building at December 3 1 , 2 0 2 2 . The terms provide for...

Wildhorse Co. receives $385.000 when it issues a $385.000,5% mortgage note payable to finance the construction of a building at December 31, 2017. The terms provide for annual installment payments of...

dus.com/courses/28611/assignments/2750979 Current Attempt In Progress Pharoah Company receives $385,000 when it issues a $385,000, 6%, mortgage note payable to finance the construction of a building...

Crane C o . receives $ 2 0 0 , 0 0 0 when i t issues a $ 2 0 0 , 0 0 0 , 1 0 % , mortgage note payable t o finance the construction o f a building a t December 3 1 , 2 0 2 2 . The terms provide for...

Wildhorse Co . receives $ 2 4 0 0 0 0 when it issues a $ 2 4 0 0 0 0 , 1 0 % mortgage note payable to finance the construction of a building at December 3 1 , 2 0 2 2 . The terms provide for annual...

If a firm has sales of $10,500 in 1999 and its receivable increase $100 and its payables decrease $150 over the year. What are the firm's cash sales? Typically, a firm's market value is greater than...

Trio Corp. will exist for one year. Its terminal cash flows next year willbe $300,000 with probability 0.3, $500,000 with probability 0.3, or $800,000 with probability0.4. All investors are...

What are the two dimensions of the financial planning process?

Risk-free rate 0.016 Market rate 0.078 Tax rate 30% Common stock Loan $2,000,000 Interest rate 0.056 Beta 1.00 7 yr, B rated bond issue Shares outstanding 310,000 Price per bond Price per share...

Chapter 1: Role of Financial Markets and Institutions Describe the types of financial markets that facilitate the flow of funds. Describe the types of securities traded within financial markets....

A coupon bond matures in 3 years. Its PAR is $1000 and it makes six coupon payments of $50 semi-annually and assumes that the interests are continuously compounded. Suppose the term structure of the...

What are the role of Electronic Healthcare Records in Healthcare?

Which statement is true? ( LO5 ) a) The permanent underclass is basically an economic asset because it is a cheap source of labor. b) The permanent underclass has slowed our rate of economic growth....

A music company has these costs: Advertising ........... Paper inserts for CD cases Blank CDs ............CD plastic cases Depreciation of CD image burner ......Salaries of sales representatives...

Are the two events in each scenario mutually exclusive or not? Explain (no mark will be given without a correct explanation). a) Rolling a sum of 5 or a sum of 9 with a pair of 6-sided dice, numbered...

1. If you use a 110-age investing rule and are 25 years old, what percent would you place in bonds? 15%; 25%; 75%; 85% 2. You are looking at a 2050 target date fund. What does that mean? - The fund...

1-1 online - Investment and Financial Strategies 1 if a mutual fund has $165 milion in assets, $10 million in accrued liabilities and 25 million shares outstanding Compute the Net Asset Value (NAV)...