On January 1, 2022, Gundy Enterprises purchases an office building for $173,000, paying $43,000 down and...

 

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On January 1, 2022, Gundy Enterprises purchases an office building for $173,000, paying $43,000 down and borrowing the remaining $130,000, signing a 9%, 10-year mortgage. Instaliment payments of $1,646.79 are due at the end of each month, with the first payment due on January 31, 2022. 3-a. Record the first monthly mortgage payment on January 31, 2022. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your final answers to 2 decimal places.) 3-b. How much of the first payment goes to interest expense and how much goes to reducing the carrying value of the loan? (Hint: look at p. 101 of the chapter 9 notes.) (Round your answers to 2 decimal places.) Reducing the Carrying Value Interest Expense First payment 975.00 On January 1, 2022, Gundy Enterprises purchases an office building for $173,000, paying $43,000 down and borrowing the remaining $130,000, signing a 9%, 10-year mortgage. Instaliment payments of $1,646.79 are due at the end of each month, with the first payment due on January 31, 2022. 3-a. Record the first monthly mortgage payment on January 31, 2022. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your final answers to 2 decimal places.) 3-b. How much of the first payment goes to interest expense and how much goes to reducing the carrying value of the loan? (Hint: look at p. 101 of the chapter 9 notes.) (Round your answers to 2 decimal places.) Reducing the Carrying Value Interest Expense First payment 975.00

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1 Journal entry to record purchase of building Date General Journal Debit Credit 01 January 2021 Bui... View the full answer