On January 1, 2020, a bank have issued a 5-year term loan to a businessman. Thefollowing details of the loan are provided as follows:Principal:Interest rate per annum:Repayment structure:5,000,000.0016%QuarterlyInstruction: Prepare the amortization table below.Q2Q3Q42024 Q1Q2Q3Q4Year Quarter PaymentBeginning Balance2020 Q1Q2Q3Q42021 Q1Q2Q3Q42022 Q1Q2Q3Q42023 Q1InterestPrincipal Balance5,000,000.00

The time period of the loan is 5 years The interest rate per annum is 16% The repayment structure is…

Answered: On January 1, 2020, a bank have issued…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Sunland Company borrowed $760,000 on December 31, 2019, by issuing an $760,000, 9% mortgage note payable. The terms call for annual installment payments of $118,423 on December 31. (a) Your answer is correct. Prepare the journal entries to record the mortgage loan and the first two installment payments. (Round answers to O decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Dec. 31, 2019 ec. 31, 2020 Account Titles and Explanation Cash Mortgage Payable Interest Expense Mortgage Payable Cash Debit 760,000 68400 50023 Credit 760,000 118423
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Subject : Accounting
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