Paiscik Corp., completed the following transactions in 2016: Jan 1 Purchased a building costing Si 90.000 and
Question:
Paiscik Corp., completed the following transactions in 2016:
Jan 1 Purchased a building costing Si 90.000 and signed a 10%, 15-year mortgage note payable for the same amount.
Jun 30 Made the first semiannual payment on the mortgage note payable.
Dec 1 Signed a five-year lease to rent a warehouse for $7,000 per month due at the end of each month. The lease is considered an operating lease.
31 Paid for one month's rent on the warehouse.
31 Leased 8 copiers and signed a four-year lease with the option to buy the copiers at the end of the fourth year at a bargain price. Under terms of the lease, monthly lease payments do not start until January 31. 2018. The present value of the lease payments is $32,000.
31 Made the second semiannual payment on the mortgage note payable.
Requirements
1. Complete the following amortization schedule for the first four mortgage payments on the $190,000 mortgage note, assuming semiannual payments of $12,360. Round amounts to the nearest dollar.
2. Record the journal entries for the 2016 transactions.
3. Prepare the long-term liabilities section of the balance sheet on December 31, 2016?
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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