Bob's Builders Inc. enters into a 10-year, 6%, $200,000 mortgage to fınance the construction of a condo complex on August 31, 202O. Monthly instalment payments are to be made at the end of each month, beginning September 30, 2020. Instructions 1) Journalize the mortgage payable issuance on August 31, 2020. 2) Provide journal entries for the first two instalment payments on September 30, 2020 and October 30, 2020, assuming that the payment is a blended principal and interest payment of $2,220. 3) Provide journal entries for the first two instalment payments on September 30, 2020 and October 30, 2020, assuming that the payment is a fixed principal payment of $1,667.

Bob's Builders Inc. enters into a 10-year, 6%, $200,000 mortgage to fınance the construction of a condo complex on August 31, 202O. Monthly instalment payments are to be made at the end of each month, beginning September 30, 2020. Instructions 1) Journalize the mortgage payable issuance on August 31, 2020. 2) Provide journal entries for the first two instalment payments on September 30, 2020 and October 30, 2020, assuming that the payment is a blended principal and interest payment of $2,220. 3) Provide journal entries for the first two instalment payments on September 30, 2020 and October 30, 2020, assuming that the payment is a fixed principal payment of $1,667.

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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Subject : Accounting
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