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 Re - x Jebits first, then credits. Exclude explanations from any journal entries.) Requirements dit 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. Print Done

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 Re - x Jebits first, then credits. Exclude explanations from any journal entries.) Requirements dit 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. Print Done

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

On June 30, Collins Management Company purchased land for $480,000 and a building for $720,000, paying $600,000 cash and issuing a 8% note for the balance, secured by a mortgage on the property. The terms of the note provide for 20 semiannual payments of $30,000 on the principal plus the interest accrued from the date of the preceding payment. If an amount box does not require an entry, leave it blank. Assume 360 days in a year. Question Content Area a. Journalize the entry to record the transaction on June 30. Date Account Debit Credit June 30 Feedback Area Feedback Question Content Area b. Journalize the entry to record the payment of the first installment on December 31. Date Account Debit Credit Dec. 31 Feedback Area Feedback Question Content Area c. Journalize the entry to record the payment of the second installment the following…
The company has a mortgage note payable for $1,500,000 that comes due in year 3. this note is paid by the signing of a new 14% note for the amount due. how do I prepare the journal entry to record this refinancing of the old note?
Company A purchases land on January 1, 2021 for $ 40,000 with a note payable. Other cost includes $ 2500 in delinquent property taxes, Ş in transfer taxes and a $ 1500 survey fee. General Journal Page Date Account Titles and Explanation Debit Credit
Prepare the following journal entry: Baily Corporation purchased a new Bus for $215,000 and paid 15% as a down payment and signed a promissory note for the reminder of the amount owed.
Elie Company purchased a building with a market value of $275,000 and land with a market value of $50,000 on January 1, 2024. Elie Company paid $25,000 cash and signed a 20-year, 6% mortgage payable for the balance. Requirements 1. 2. Journalize the January 1, 2024, purchase. Journalize the first monthly payment of $2,149 on January 31, 2024. (Round to the nearest dollar.) Requirement 1. Journalize the January 1, 2024, purchase. (Record debits first, then credits. Select explanations on the last line of the journal entry.) Date Accounts and Explanations 2024 Jan. 1 Debit O Credit
On January 1, 2021, CPS Co. borrowed $340,000 cash from iLend and issued a five-year $340,000, 4% note. Interest was payable annually on December 31. Required: Prepare the journal entries for both firms to record interest at December 31, 2021.
On June 30, Collins Management Company purchased land for $400,000 and a building for $560,000, paying $360,000 cash and issuing a 5% note for the balance, secured by a mortgage on the property. The terms of the note provide for 20 semiannual payments of $30,000 on the principal plus the interest accrued from the date of the preceding payment. If an amount box does not require an entry, leave it blank. Question Content Area a. Journalize the entry to record the transaction on June 30. b. Journalize the entry to record the payment of the first installment on December 31.
On January 1, Snipes Construction paid for earth - moving equipment by issuing a $490,000, 3 - year note that specified 3% interest to be paid on December 31 of each year. The equipment's retail cash price was unknown, but it was determined that a reasonable interest rate was 6%. At what amount should Snipes record the equipment and the note? What journal entry should it record for the transaction?
On June 30, Collins Management Company purchased land for $560,000 and a building for $520,000, paying $300,000 cash and issuing a 4% note for the balance, secured by a mortgage on the property. The terms of the note provide for 20 semiannual payments of $39,000 on the principal plus the interest accrued from the date of the preceding payment. Journalize the entry to record (a) the transaction on June 30, (b) the payment of the first installment on December 31, and (c) the payment of the second installment the following June 30. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS Collins Management Company General Ledger ASSETS 110 Cash 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115 Inventory 116 Supplies 118 Prepaid Insurance 120 Land 123 Building 124 Accumulated Depreciation-Building 125 Office Equipment 126 Accumulated Depreciation-Office Equipment LIABILITIES 210…
4) Eloquent Media Ltd. completed the following transactions: Sept. 14, 2019 Provided services to Inga Corporation on account, $3,000, terms 30 days. Nov. 1, 2019 Accepted a one-year, 12% note from Inga Corporation to settle its account. Dec. 31, 2019 Accrued interest on the note from Inga Corporation. (Round to the nearest dollar.) Nov. 1, 2020 Received amount due from Inga Corporation. Record entries for the above transactions.
Detwiler Orchard issues a $558,020, 10%, 15-year mortgage note to obtain needed financing for a new lab. The terms call for semiannual payments of $36,300 each.Prepare the entries to record the mortgage loan and the first installment payment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places e.g. 8,970.) Account Titles and Explanation Debit Credit (To record mortgage loan)
On August 1, 2021, Trico Technologies, an aeronautic electronics company, borrows $20.6 million cash to expand operations. The loan is made by FirstBanc Corp. under a short-term line of credit arrangement. Trico signs a six-month, 6% promissory note. Interest is payable at maturity. Trico’s year-end is December 31. Required: 1.-3. Record the necessary entries in the Journal Entry Worksheet below for Trico Technologies. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 should be entered as 5,000,000).)