Keel Company purchased a building and land with a fair market value of $650,000 (building, $550,000 and land, $100,000) on January 1, 2018. Keel signed a 20-year, 8% mortgage payable. Keel will make monthly payments of $5,436.86. Round to two decimal places. Explanations are not required for journal entries. 1. Journalize the mortgage payable issuance on January 1, 2018. 2. Prepare an amortization schedule for the first two payments. 3. Journalize the first payment on January 31, 2018. 4. Journalize the second payment on February 28, 2018. Requirement 2. Prepare an amortization schedule for the first two payments. (Round all numbers to the nearest cent.) Beginning Principal Interest Total Ending Balance Payment Expense Payment Balance 1/1/2018 1/31/2018 2/28/2018
Keel Company purchased a building and land with a fair market value of $650,000 (building, $550,000 and land, $100,000) on January 1, 2018. Keel signed a 20-year, 8% mortgage payable. Keel will make monthly payments of $5,436.86. Round to two decimal places. Explanations are not required for journal entries. 1. Journalize the mortgage payable issuance on January 1, 2018. 2. Prepare an amortization schedule for the first two payments. 3. Journalize the first payment on January 31, 2018. 4. Journalize the second payment on February 28, 2018. Requirement 2. Prepare an amortization schedule for the first two payments. (Round all numbers to the nearest cent.) Beginning Principal Interest Total Ending Balance Payment Expense Payment Balance 1/1/2018 1/31/2018 2/28/2018
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Keel Company purchased a building and land with a fair market value of $650,000 (building, $550,000 and land, $100,000) on January 1, 2018. Keel signed a 20-year, 8% mortgage payable. Keel will make monthly payments of $5,436.86. Round to two decimal places. Explanations are not required for journal entries.
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1.
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Journalize the mortgage payable issuance on January 1,
2018.
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2.
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Prepare an amortization schedule for the first two payments.
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3.
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Journalize the first payment on January 31,
2018.
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4.
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Journalize the second payment on February 28,
2018.
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Requirement 2. Prepare an amortization schedule for the first two payments. (Round all numbers to the nearest cent.)
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Beginning
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Principal
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Interest
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Total
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Ending
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Balance
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Payment
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Expense
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Payment
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Balance
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1/1/2018
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1/31/2018
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2/28/2018
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