Ingrid's Inn purchased some property on December 31, 2011, for $103,000, paying $15,000 in cash and...
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Ingrid's Inn purchased some property on December 31, 2011, for $103,000, paying $15,000 in cash and obtaining a mortgage loan for the other $88,000. The interest rate is 4% per year, with $2,681 payments made at the end of March, June, September, and December 2012. What amounts shouid appear as interest expense on the quarterly income statements and as liabilities on the quarterly balance sheets during 2012? What amount of interest expense should appear on the income statement for the year ended December 31, 2012? 1. 2 1. What amounts should appear as interest expense on the quarterly income statements and as liabilities on the quarterly balance sheets during 2012? Complete the amortization schedule to calculate the interest expense and liability balance. (Round your answers to the nearest cent.) (1) (2) (3) (4) (5) Quarter Beginning Cash Interest Principal Ending ending principal payment paid principal balance expense balance (1) x 4% x 3/12 (2) - (3) (1) - (4) March June September December 2. What amount of interest expense should appear on the income statement for the year ended December 31, 2012? S Ingrid's Inn purchased some property on December 31, 2011, for $103,000, paying $15,000 in cash and obtaining a mortgage loan for the other $88,000. The interest rate is 4% per year, with $2,681 payments made at the end of March, June, September, and December 2012. What amounts shouid appear as interest expense on the quarterly income statements and as liabilities on the quarterly balance sheets during 2012? What amount of interest expense should appear on the income statement for the year ended December 31, 2012? 1. 2 1. What amounts should appear as interest expense on the quarterly income statements and as liabilities on the quarterly balance sheets during 2012? Complete the amortization schedule to calculate the interest expense and liability balance. (Round your answers to the nearest cent.) (1) (2) (3) (4) (5) Quarter Beginning Cash Interest Principal Ending ending principal payment paid principal balance expense balance (1) x 4% x 3/12 (2) - (3) (1) - (4) March June September December 2. What amount of interest expense should appear on the income statement for the year ended December 31, 2012? S
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Related Book For
Financial accounting
ISBN: 978-0132751124
9th edition
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
Posted Date:
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