It is 1/1/2024, Djokovic has purchased a building for $1 million and taken a 30-year mortgage. Djokovic can afford a down payment 20%. Payments are yearly at the end of each year in equal amounts, starting on 12/31/2024. The interest rate is 8%. A) Write the journal entry to record the purchase of the building on 1/1/2024. B) Calculate the payment to be made at the end of each year. (show work for partial credit) C) Write the journal entry that records the first payment on 12/31/2024. D) Imagine Djokovic just had a windfall of cash, and wants to pay off the mortgage on 1/1/2025. What is the lump sum value to pay off.

Answer rating: 100% (QA)

A Journal entry to record the purchase of the building on 112024 Date 112024 Account Debit Credit Building 1000000 Mortgage Payable 800000 Cash 200000 ... View the full answer