Kessel Company purchased a building and land with a fair market value of 575,000 (building, 475,000, and land 100,000) on January 1, 2018 Kessel signed a 25-year, 15% mortage payable. Kessel will make monthly payments of 7,364.78. Round to two decimal places. No explenations required.

Requirements:

1.Journalize the mortage payable issuance on january 1, 2018......I have Done the entry as pictured below.

2. Prepare an amortization schedule for the fist two payments..... I got some of the numbers in there not sure if I did it correctly

3. Journalize the first payment on January 31, 2018.

4. Journalize the second payment on February 28, 2018.

Requirement 1. Journalize the mortgage payable issuance on January? 1,

2018.

?(Record debits? first, then credits. Exclude explanations from any journal? entries.)

Date			Accounts	Debit	Credit
2018
Jan. 1			Building	475,000.00
			Land	100,000.00
			Mortgage Payable		575,000.00

Requirement 2. Prepare an amortization schedule for the first two payments. ?(Round all numbers to the nearest? cent.)

	Beginning	Principal	Interest	Total	Ending
	Balance	Payment	Expense	Payment	Balance
1/1/2018					575,000
1/31/2018	575,000	177.28	7,187.50	7,364.78	574,822.72
2/28/2018	574,822.72	179.50	7185.30	7,364.78

Answer rating: 100% (QA)

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