Is my solutions correct? I got help from another Bartleby expert and filled out the journal entries, but just double checking. you maybe the same expert! The $1,794,000 note payable to bank due on April 30, Year 3, is classified as a current liability at December 31, Year 2. The aggregate maturities of mortgages are as follows ($ in thousands): Year Amount Year 3 $2,747 Year 4 849 Year 5 4,003 Year 6 100 Q: The company has a mortgage note payable for $1,794,000 that comes due on April 30, Year 3. Suppose that this note is paid by the signing of a new 14% note for the amount due. Prepare the April 30, Year 3, journal entry to record this refinancing of the old note. Mortgage Note Payable DR $ 1,794,000.00 14% Notes Payable CR $ 1,794,000.00 (being refinancing of the old note) Q: If the company pays the principal along with any remaining interest on April 30, Year 3. Prepare a journal entry to record this cash payment. Cr Cash $ 1,794,000.00 DR Mortgage Notes Payable

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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Is my solutions correct? I got help from another Bartleby expert and filled out the journal entries, but just double checking. you maybe the same expert!

The $1,794,000 note payable to bank due on April 30, Year 3, is classified as a current liability at December 31, Year 2. The aggregate maturities of mortgages are as follows
($ in thousands):
Year	Amount
Year 3	$2,747
Year 4	849
Year 5	4,003
Year 6	100

Q: The company has a mortgage note payable for $1,794,000 that comes due on April 30, Year 3. Suppose that this note is paid by the signing of a new 14% note for the amount due. Prepare the April 30, Year 3, journal entry to record this refinancing of the old note.
	Mortgage Note Payable DR	$ 1,794,000.00
	14% Notes Payable CR		$ 1,794,000.00
	(being refinancing of the old note)
Q: If the company pays the principal along with any remaining interest on April 30, Year 3. Prepare a journal entry to record this cash payment.
	Cr Cash		$ 1,794,000.00
	DR Mortgage Notes Payable	$ 1,794,000.00