Orange County Wines Ltd. issued an $860,000, five-year, 12 percent mortgage note payable on December 31,...
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Orange County Wines Ltd. issued an $860,000, five-year, 12 percent mortgage note payable on December 31, 2020, to help finance a new warehouse. The terms of the mortgage provide for semi-annual blended payments of $116,846 on June 30 and December 31 of each year. Required 1. Prepare an instalment payment schedule for the first two years of this mortgage. 2. Record the issuance of the mortgage note payable on December 31, 2020. 3. Report mortgage payable on the December 31, 2020, balance sheet. Use the principal reduction to calculate the current portion. 4. Journalize the first two instalment payments on June 30, 2021, and December 31, 2021. Requirement 1. Prepare an instalment payment schedule for the first two years of this mortgage. (Round all amounts to the nearest whole dollar.) A B D E Semi-annual C Interest Blended Expense Principal Ending Interest Beginning Payment Balance Period Balance Payment 6% (B-C) (E-D) Dec. 31, 2020 4 Jun. 30, 2021 Orange County Wines Ltd. issued an $860,000, five-year, 12 percent mortgage note payable on December 31, 2020, to help finance a new warehouse. The terms of the mortgage provide for semi-annual blended payments of $116,846 on June 30 and December 31 of each year. Required 1. Prepare an instalment payment schedule for the first two years of this mortgage. 2. Record the issuance of the mortgage note payable on December 31, 2020. 3. Report mortgage payable on the December 31, 2020, balance sheet. Use the principal reduction to calculate the current portion. 4. Journalize the first two instalment payments on June 30, 2021, and December 31, 2021. Requirement 1. Prepare an instalment payment schedule for the first two years of this mortgage. (Round all amounts to the nearest whole dollar.) A B D E Semi-annual C Interest Blended Expense Principal Ending Interest Beginning Payment Balance Period Balance Payment 6% (B-C) (E-D) Dec. 31, 2020 4 Jun. 30, 2021
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Related Book For
Horngrens Accounting
ISBN: 9780135359785
11th Canadian Edition Volume 2
Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann Johnston, Peter R. Norwood
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