On January 1, 2012, Gundy Enterprises purchases an office for $250,000, paying $50,000 down and borrowing the
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Required:
1. Record issuance of the mortgage installment note on January 1, 2012.
2. Complete the first three rows of an amortization schedule similar to Illustration 9-16.
3. Record the first monthly mortgage payment on January 31, 2012. How much of the first payment goes to interest expense and how much goes to reducing the carrying value of the loan?
4. Total payments over the 30 years are $528,311 ($1,467.53 × 360 monthly payments). How much of this is interest expense and how much is actual payment of the loan?
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Related Book For
Financial Accounting
ISBN: 9780078110825
2nd Edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
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