On January 1, Fehler Company borrowed $1,000,000 to purchase a new building and signed a mortgage agreement
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On January 1, Fehler Company borrowed $1,000,000 to purchase a new building and signed a mortgage agreement pledging the building as collateral on the loan. The mortgage is at 10% for 30 years, and the monthly payment is $8,776, payable on January 31 with subsequent payments due at the end of each month thereafter. Make the necessary journal entries to record the following transactions:
1. Acquisition of the mortgage
2. January 31 (first month) payment on mortgage
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Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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