**Kessel Company Mortgage and Amortization Analysis**Kessel Company acquired a building and land with a combined fair market value of $525,000 on January 1, 2018. The breakdown is $275,000 for the building and $250,000 for the land. To finance this purchase, Kessel signed a 15-year mortgage with a 10% interest rate. The company has committed to making monthly payments of $5,641.68.**Journal Entries:***Requirement 1: Mortgage Payable Issuance on January 1, 2018*- **Date: January 1, 2018** - **Accounts:** - **Building** - Debit: $275,000.00 - **Land** - Debit: $250,000.00 - **Mortgage Payable** - Credit: $525,000.00**Amortization Schedule:***Requirement 2: First Two Payments*This section contains a table providing information for the first two payments, detailing the transitions in balance and expenditures.- **Columns:** - Beginning Balance - Principal Payment - Interest Expense - Total Payment - Ending Balance- **Row Details:** - **1/1/2018** - Beginning Balance: $525,000.00 - Principal Payment: $0.00 - Interest Expense: $0.00 - Total Payment: $0.00 - Ending Balance: $525,000.00 - **1/31/2018** - Beginning Balance: $525,000.00 - Principal Payment: $1,266.68 - Interest Expense: $4,375.00 - Total Payment: $5,641.68 - Ending Balance: $519,358.32 - **2/28/2018** - Beginning Balance: $519,358.32 - Principal Payment: $1,313.32 - Interest Expense: $4,328.36 - Total Payment: $5,641.68 - Ending Balance: $518,045.00**Requirements Window:**The window outlines several tasks:1. Journalize the mortgage payable issuance on January 1, 2018.2. Prepare an

Mortgage payable: It is a liability which is secured against a property or asset. It is a long-term…

Kessel Company purchased a building and land with a fair market value of $525,000 (building, $275,000 and land, $250,000) on January 1, 2018. Kessel signed a 15-year, 10% mortgage payable. Kessel will make monthly payments of $5,641.68. Round to two decimal places. Explanations are not required for journal entries. Read the reguirements Requirement 1. Journalize the mortgage payable issuance on January 1, 2018. (Record debits first, then credits. Exdude explanations from any journal entries.) - X Date Accounts Debit Credit Requirements 2018 275,000.00 250,000.00 Jan. 1 Bulding Land 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, 201s. Mortgage Payable 525,000.00 Requirement 2. Prepare an amortization schedule for the first two payments. (Round all numbers t Principal Ending Balance $ 525,000.00 Beginning Interest Total Print Done Balance Рayment Expense Payment 1/1/2018 1/31/2018 $ 525,000.00 S 1,266.68 $ 4,375.00 $ 5,641.68 519.358.32 2/28/2018 519358 32 1313.32 5,641.68 513.716.64

Kessel Company purchased a building and land with a fair market value of $525,000 (building, $275,000 and land, $250,000) on January 1, 2018. Kessel signed a 15-year, 10% mortgage payable. Kessel will make monthly payments of $5,641.68. Round to two decimal places. Explanations are not required for journal entries. Read the reguirements Requirement 1. Journalize the mortgage payable issuance on January 1, 2018. (Record debits first, then credits. Exdude explanations from any journal entries.) - X Date Accounts Debit Credit Requirements 2018 275,000.00 250,000.00 Jan. 1 Bulding Land 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, 201s. Mortgage Payable 525,000.00 Requirement 2. Prepare an amortization schedule for the first two payments. (Round all numbers t Principal Ending Balance $ 525,000.00 Beginning Interest Total Print Done Balance Рayment Expense Payment 1/1/2018 1/31/2018 $ 525,000.00 S 1,266.68 $ 4,375.00 $ 5,641.68 519.358.32 2/28/2018 519358 32 1313.32 5,641.68 513.716.64

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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