Nance Co. receives $338,600 when it issues a $338,600, 6%, mortgage note payable to finance the construction of a

building at December 31, 2014. The terms provide for semiannual installment payments of $17,275 on June 30 and

December 31.

6/27/2016 Exercise 1024 Print by: FALICIA NEWSOME ACC/291 50155874 / Assignment: Week 3 Assignment *Exercise 1024 Nance Co. receives $338,600 when it issues a $338,600, 6%, mortgage note payable to finance the construction of a building at December 31, 2014. The terms provide for semiannual installment payments of $17,275 on June 30 and December 31. Prepare the schedule using effectiveinterest method to amortize bond premium or discount of Nance Co. (Round answers to 0 decimal places, e.g. 125.) Semiannual Interest Period Issue date Cash Payment Interest Expense Reduction of Principal $ $ Principal Balance $ $ 6/30/15 12/31/15 Prepare the journal entries to record the mortgage loan. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2014 Prepare the journal entries to record the first two installment payments. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit First Installment Payment June 30, 2015 Second Installment Payment Dec. 31, 2015 Question Attempts: 0 of 3 used Copyright 20002016 by John Wiley & Sons, Inc. or related companies. All rights reserved. http://edugen.wiley.com/edugen/shared/assignment/test/qprint.uni 1/1