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Drensic Machinery issues an $1,200,000, 9%, 12 year r he termo f the note provide for anual installment paym 135 06

Drensic Machinery issues an $1,200,000, 9%, 12 year r he termo f the note provide for anual installment paym 135 06

FINANCIAL ACCOUNTING
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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Problem 2 Forensic Machinery issues an $1,200,000, 9%, 12 year mortgage note on December 31, 2022. The termo f the note provide for anual installment payments, exclusive of real estate taxes, of $135,000. Payments are due on December 31. Instructions: 1. Prepare an installment payment Schedule for the first 5 years. Annual Interest Period Issue Date 1 2 3 4 5 Cash Payment Interest Expense Reduction of Principal Principal Balance 2. Prepare the entries for (a) the loan and (b) the first installment payment.
Transcribed Image Text:Problem 2 Forensic Machinery issues an $1,200,000, 9%, 12 year mortgage note on December 31, 2022. The termo f the note provide for anual installment payments, exclusive of real estate taxes, of $135,000. Payments are due on December 31. Instructions: 1. Prepare an installment payment Schedule for the first 5 years. Annual Interest Period Issue Date 1 2 3 4 5 Cash Payment Interest Expense Reduction of Principal Principal Balance 2. Prepare the entries for (a) the loan and (b) the first installment payment.
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