On January 1, 2017, ABC issues a 1,000,000 10 %, 20-year mortgage note to obtain needed...

 

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On January 1, 2017, ABC issues a 1,000,000 10 %, 20-year mortgage note to obtain needed financing for a new building. The semiannual payment of 58,278 each is made on July 1 and January 1 Instructions 1. Prepare the entries to record the mortgage loan and the second installment payment. 2. Determine the amount of current liabilities and non-current liabilities that are reported in the statement of financial position at the end of 2017 Question two 1/8/2016, ABC signs a 100,000 12%, 6 month note maturing on 1/2/2017. 31/12/2016, ABC transfers to the government the due balance regarding the sales taxes collected from customers, provided that total sales including taxes was equal to 1,050,000 and that the tax rate is 5%. Instructions Prepare the appropriate entries in the Journal on the following dates: 1/8/2016, 31/12/2016, and 1/2/2017. On January 1, 2017, ABC issues a 1,000,000 10 %, 20-year mortgage note to obtain needed financing for a new building. The semiannual payment of 58,278 each is made on July 1 and January 1 Instructions 1. Prepare the entries to record the mortgage loan and the second installment payment. 2. Determine the amount of current liabilities and non-current liabilities that are reported in the statement of financial position at the end of 2017 Question two 1/8/2016, ABC signs a 100,000 12%, 6 month note maturing on 1/2/2017. 31/12/2016, ABC transfers to the government the due balance regarding the sales taxes collected from customers, provided that total sales including taxes was equal to 1,050,000 and that the tax rate is 5%. Instructions Prepare the appropriate entries in the Journal on the following dates: 1/8/2016, 31/12/2016, and 1/2/2017.

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