problem 1

1. iovett Electron . Dovet Electronics issues a $400,000,8%, 10-year mortgage note on December 31, 2011. The proceeds from the note are to be used in financing a new research laboratory. The terms of the note provide for semiannual installment payments, exclusive of real estate taxes and insurance, of $29,433. Payments are due June 30 and December 31. Instructions (a) Prepare an installment payments schedule for the first 3 years. (b) Prepare the entries for (1) the loan and (2) the first two installment payments. Dallem 7. Acal Company issued $400,000,9%, 20-year bonds on January 1, 2012, at 103. Inter- est is payable semiannually on July 1 and January 1. ACME uses straight-line amortization for bond premium or discount