Journalize the following mortgage transactions. For each transaction prepare 2 journal entries - 1. To Record the
Question:
Journalize the following mortgage transactions. For each transaction prepare 2 journal entries - 1. To Record the mortgage 2. To record year 1 payment
1. Base Line Co. receives $250,000 when it issues a $250,000, 8%, mortgage note payable to finance the construction of a building at December 31, 2016. The terms provide for annual installment payments of $40,000 on December 31
2. Heller Company borrowed $600,000 on December 31, 2017, by issuing a $600,000, 8% mortgage note payable. The terms call for annual installment payments of $80,000 on December 31.
3. Willis Electronics issues a $600,000, 8%, 10-year mortgage note on December 31, 2016, to help finance a plant expansion program. The terms of the note provide for annual installment payments of $89,418. Payments are due on December 31
4. Porter Technology Inc. issues a $500,000, 8%, 20-year mortgage note on December 31, 2020, to obtain needed financing for a new research laboratory. The terms provide for annual installment payments of $50,926 on December 31
Please give two journal entry for each and the first year mortgage calculation.
College Accounting A Contemporary Approach
ISBN: 978-0077639730
3rd edition
Authors: David Haddock, John Price, Michael Farina