Q 12 –Khamis Electronics issues a $700,000, 10-year, 7% mortgage note payable on December31, 2020, to help finance a plant expansion. The terms of the note provide for semi-annualblended payments of $49,253. Payments are due on June 30 and December 31.Instructions4(a). Prepare an instalment payment schedule for the first two years. Round allcalculations to the nearest dollar.(b). Prepare the entries for (1) the loan and (2) the first two instalment payments on June30, 2021, and December 31, 2021.(c). Show how the total mortgage liability should be reported on the balance sheet atDecember 31, 2021.

Installment paid for any loan consists of principle portion and also interest portion. Out of the…

12 –Khamis Electronics issues a $700,000, 10-year, 7% mortgage note payable on December 31, 2020, to help finance a plant expansion. The terms of the note provide for semi-annual blended payments of $49,253. Payments are due on June 30 and December 31. Instructions

12 –Khamis Electronics issues a $700,000, 10-year, 7% mortgage note payable on December 31, 2020, to help finance a plant expansion. The terms of the note provide for semi-annual blended payments of $49,253. Payments are due on June 30 and December 31. Instructions

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Q 12 –Khamis Electronics issues a $700,000, 10-year, 7% mortgage note payable on December
31, 2020, to help finance a plant expansion. The terms of the note provide for semi-annual
blended payments of $49,253. Payments are due on June 30 and December 31.
Instructions
4
(a). Prepare an instalment payment schedule for the first two years. Round all
calculations to the nearest dollar.
(b). Prepare the entries for (1) the loan and (2) the first two instalment payments on June
30, 2021, and December 31, 2021.
(c). Show how the total mortgage liability should be reported on the balance sheet at
December 31, 2021.

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