On March 1, 2020 Inland corporation purchased a building by signing a $185,000 long term mortgage with monthly payments of $2,500. The mortgage carries an interest rate of 12 percent. 1. a. For the first three months, prepare a monthly payment schedule showing the monthly payment, the interest for the month, the reduction in debt and the unpaid balance. (round to the nearest dollar). b. Prepare journal entries to record the purchase of the building (include dates). C. Prepare the journal entry to record the first two monthly payments (include dates).
On March 1, 2020 Inland corporation purchased a building by signing a $185,000 long term mortgage with monthly payments of $2,500. The mortgage carries an interest rate of 12 percent. 1. a. For the first three months, prepare a monthly payment schedule showing the monthly payment, the interest for the month, the reduction in debt and the unpaid balance. (round to the nearest dollar). b. Prepare journal entries to record the purchase of the building (include dates). C. Prepare the journal entry to record the first two monthly payments (include dates).
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
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Transcribed Image Text:On March 1, 2020 Inland corporation purchased a building by signing a $185,000 long
term mortgage with monthly payments of $2,500. The mortgage carries an interest rate of
12 percent.
1.
a. For the first three months, prepare a monthly payment schedule showing the
monthly payment, the interest for the month, the reduction in debt and the
unpaid balance. (round to the nearest dollar).
b. Prepare journal entries to record the purchase of the building (include dates).
C. Prepare the journal entry to record the first two monthly payments (include
dates).
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