Kaler Company purchased a building and land with a fair market value of $600,000 (building, $400,000 and land, $200,000) on January 1, 2024. Kaler signed a 30-year, 13% mortgage payable. Kaler will make monthly payments of $6,637.20. Round to two decimal places. Explanations are not required for journal entries. Read the requirements Requirement 1. Journalize the mortgage payable issuance on January 1, 2024. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Accounts Debit Credit 2024 Jan. 1 Building 400,000.00 Land 200,000.00 Mortgage Payable 600,000.00 Requirement 2. Prepare an amortization schedule for the first two payments. (Round all numbers to the nearest cent.) Beginning Principal Total Ending Balance Interest Balance Payment Expense Payment 1/1/2024 $ 600,000.00 1/31/2024 $ 600,000.00 $4 6,500.00 $ 6,637.20 2/28/2024

Kaler Company purchased a building and land with a fair market value of $600,000 (building, $400,000 and land, $200,000) on January 1, 2024. Kaler signed a 30-year, 13% mortgage payable. Kaler will make monthly payments of $6,637.20. Round to two decimal places. Explanations are not required for journal entries. Read the requirements Requirement 1. Journalize the mortgage payable issuance on January 1, 2024. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Accounts Debit Credit 2024 Jan. 1 Building 400,000.00 Land 200,000.00 Mortgage Payable 600,000.00 Requirement 2. Prepare an amortization schedule for the first two payments. (Round all numbers to the nearest cent.) Beginning Principal Total Ending Balance Interest Balance Payment Expense Payment 1/1/2024 $ 600,000.00 1/31/2024 $ 600,000.00 $4 6,500.00 $ 6,637.20 2/28/2024

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

At the balance sheet date, a business owes a mortgage note payable of $660,000, the terms of which provide for monthly payments of $2,200. How should the liability be classified on the balance sheet? Current liability: $Long-term liability: $
PLEASE PROVIDE WELL EXPLAINED , COMPUTED AND FORMULATED ANSWER WITH STEPS AND WORKING THANKS PLEASE ANSWER IN TEXT NOT IMAGE
The adjusted trial balance for Sheridan Farm Corporation at the end of the current year contained the following accounts. Interest Payable Lease Liability Bonds Payable, due 2027 Premium on Bonds Payable $8,000 85,600 175,600 28,000 Prepare the long-term liabilities section of the balance sheet. (Enter account name only and do not provide descriptive information.) Sheridan Farm Corporation Balance Sheet (Partial) $ $
Required information [The following information applies to the questions displayed below.] On January 1, 2024, Bloomfield Enterprises purchases a building for $327,000, paying $57,000 down and borrowing the remaining $270,000, signing a 7%, 10-year mortgage. Installment payments of $3,134.93 are due at the end of each month, with the first payment due on January 31, 2024. 3-a. Record the first monthly mortgage payment on January 31, 2024. 3-b. How much of the first payment goes to interest expense and how much goes to reducing the carrying value of the loan? Answer is not complete. Complete this question by entering your answers in the tabs below. Req 3a Req 3b Record the first monthly mortgage payment on January 31, 2024. (If no entry is required for select "No Journal Entry Required" in the first account field. Do not round intermediate calcul to 2 decimal places.) No Date General Journal 1 January 31, 2024 Interest Expense Notes Payable Cash Debit 1,559.93( 1,575.00
Muffin Co. issues an $800,000, 10%, 10-year mortgage note on December 31, 2019, to obtain financing for a new building. The terms provide for semiannual installment payments of $64,194. Instructions Prepare two entrles to record the mortgage loan on December 31, 2019, and the first installment payment. Essay Toolbar navigation B I U S
Company A signed an agreement with a contractor to have a production facility built. The construction started on 01/01/2025 and continued until 08/31/2026. Company A borrowed a bank loan to be used in financing of the construction. The following information on Company A's bank loans is available: Annual Interest Date Borrowed Amount ($) Term Rate Specific Construction 01/01/2025 850,000 10 percent 2 years Loan Other Loan Other Loan 08/10/2024 450,000 12 percent 3 years 11/05/2023 750,000 13 percent 5 years Company A incurred the following costs during 2025: Expenditure Date Expenditure Amount ($) 01/01/2025 03/01/2025 07/01/2025 12/31/2025 600,000 720,000 540,000 330,000 The amount of interest cost to be capitalized in 2025 is approximately: $160,027 O $155,626 O $163,275 $152,215
Balance sheet classification At the balance sheet date, a business owes a mortgage note payable of $648,000, the terms of which provide for monthly payments of $1,800. How should the liability be classified on the balance sheet? Current liability: $ Long-term liability: $
Current Attempt in Progress Crane Inc. signed a 10-year, 4%, $240,000 mortgage payable on November 30, 2020, with a bank to obtain financing for a new machinery. The terms provide for instalment payments of $2,430 at the end of each month. Prepare the entries to record the mortgage on November 30, 2020, and the first two payments on December 31, 2020, and January 31, 2021. (Credit account titles are automatically indented when the amount is entered.Do not indent manually. List all debit entries before credit entries. Round answers to the nearest whole dollar, e.g. 5,275.) Blended principal and interest payment Date 2020 2021 Account Titles and Explanation Debit 10 Credit
Prepare all journal entries and adjusting journal entries necessary to record all of Red Robin's transactions related to the note payable information below: Red Robin purchased the building on January 1, 2019, for $496,300 using a note payable. The loan is a 30-year, 5% installment loan with annual payments due every December 31. See amortization table below: Building Loan Amortization Principal Interest Years Payments/year Payment Date 31-Dec-19 31-Dec-20 31-Dec-21 31-Dec-22 31-Dec-23 31-Dec-24 31-Dec-25 31-Dec-26 31-Dec-27 31-Dec-28 31-Dec-29 31-Dec-30 31-Dec-31 31-Dec-32 31-Dec-33 31-Dec-34 31-Dec-35 31-Dec-36 31-Dec-37 31-Dec-38 31-Dec-39 31-Dec-40 31-Dec-41 31-Dec-42 31-Dec-43 31-Dec-44 31-Dec-45 31-Dec-46 31-Dec-47 31-Dec-48 $496,300 5.00% 30 1 32,285 Interest Principal Payment Balance 496,300 488,830 480,986 7,470 32,285 7,844 32,285 24,815 24,441 24,049 32,285 23,638 32,285 23,205 32,285 22,751 32,285 22,274 10,011 32,285 21,774 10,511 32,285 21,248 11,037 32,285 8,236 8,647…
Subject : Accounting
Vinubhai
Munabhai