On December 31, 2024, Samuels Bakery Company purchased $700,000 of property by paying $100,000 in cash and signing a 10 - year mortgage at 12% for the balance. The amortization schedule shows that the company will pay $106,191 per year. What is the journal entry for the first yearly payment on December 31, 2025? ..... A. Mortgages Payable Interest Expense 60,000 106,191 Cash 166,191 B. Mortgages Payable Interest Expense 178,191 72,000 Cash 106,191 O C. Mortgages Payable Interest Expense 34,191 72,000 Cash 106,191 D. Mortgages Payable Interest Expense 60,000 72,000 Cash 132,000
On December 31, 2024, Samuels Bakery Company purchased $700,000 of property by paying $100,000 in cash and signing a 10 - year mortgage at 12% for the balance. The amortization schedule shows that the company will pay $106,191 per year. What is the journal entry for the first yearly payment on December 31, 2025? ..... A. Mortgages Payable Interest Expense 60,000 106,191 Cash 166,191 B. Mortgages Payable Interest Expense 178,191 72,000 Cash 106,191 O C. Mortgages Payable Interest Expense 34,191 72,000 Cash 106,191 D. Mortgages Payable Interest Expense 60,000 72,000 Cash 132,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On December 31, 2024, Samuels Bakery Company purchased $700,000 of property by paying $100,000 in cash and signing
a 10 - year mortgage at 12% for the balance. The amortization schedule shows that the company will pay $106,191 per year.
What is the journal entry for the first yearly payment on December 31, 2025?
.....
A. Mortgages Payable
Interest Expense
60,000
106,191
Cash
166,191
B. Mortgages Payable
178,191
Interest Expense
72,000
Cash
106,191
C. Mortgages Payable
Interest Expense
34,191
72,000
Cash
106,191
D. Mortgages Payable
Interest Expense
60,000
72,000
Cash
132,000
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