On September 1, 2023, Tipton Enterprises borrowed$400,000 on a mortgage to purchase land and abuilding. The land and building are pledged as collateralon the mortgage, which has an interest rate of 12%,compounded monthly. Payments of $4,700 are made atthe end of each month, beginning on September 30,2023.Calculate the balance in the Mortgage Payable accountafter the October 31 payment:$

Calculate the balance in the Mortgage Payable account after the October 31 payment using Excel as…

Answered: On September 1, 2023, Tipton…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1EA: Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest...

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Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest rate was 4% compounded annually. Halep Inc. will make payments of $8,264.70 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.
Blossom Company receives $240,000 when it issues a $240,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2022. The terms provide for annual installment payments of $40,000 on December 31. Prepare an amortization schedule of a mortgage note for two years. Prepare the journal entry to record the mortgage loan. Prepare the journal entries to record the first two installment payments.
Novak Corp. receives $375,600 when it issues a $375,600, 10% mortgage note payable to finance the construction of a building at December 31, 2022. The terms provide for annual installment payments of $62,600 on December 31. Prepare the journal entries to record the mortgage loan and the first two payments.
Lisa Ehrlich Inc. issues a $1,300,000, 8%, 10-year mortgage note on December 31, 2022, to obtain financing for a new building. The terms provide for annual installment payments of $251,118. Instructions Prepare the entry to record the mortgage loan on December 31, 2022 Prepare entries to record the first and second installment payments on December 31, 2023 and 2024. Calculate the principal balance on December 31, 2024 after the installment payment is made.
On September 1, 2018, Speedy Lube signed a 30-year, $1,080,000 mortgage note payable to Jonstown Bank and Trust in conjunction with the purchase of a building and land. The mortgage note calls for interest at an annual rate of 12 percent (1 percent per month). The note is fully amortizing over a period of 360 months. The bank sent Speedy Lube an amortization table showing the allocation of monthly payments between interest and principal over the life of the loan. A small part of this amortization table is illustrated below. (For convenience, amounts have been rounded to the nearest dollar.) AMORTIZATION TABLE (12%, 30-YEAR MORTGAGE NOTE PAYABLE FOR $1,080,000; PAYABLE IN 360 MONTHLY INSTALLMENTS OF $11,110) InterestPeriod PaymentDate MonthlyPayment InterestExpense PrincipalReduction UnpaidBalance Issue date Sept. 1, 2018 – – – $ 1,080,000 1 Oct. 1 $ 11,110 $ 10,800 $ 310 1,079,690 2 Nov. 1 11,110 10,797 313…
Cullumber Electronics issues a $355,500, 3%, 10-year mortgage note on December 31, 2021. The proceeds from the note are to be used in financing a new research laboratory. The terms of the note provide for annual installment payments, exclusive of real estate taxes and insurance, of $41,675. Payments are due on December 31. Show how the total mortgage liability should be reported on the balance sheet at December 31, 2022. (Enter account name only and do not provide descriptive information. Round answers to 0 decimal places, e.g. 15,250.) Cullumber ElectronicsBalance Sheet (Partial)choose the accounting period select an opening name for section one enter a balance sheet item $enter a dollar amount select an opening name for section two…
Sunland Inc. issues an $850,000, 10%, 10-year mortgage note on December 31, 2022, to obtain financing for a new building. The terms provide for annual installment payments of $120,000.Prepare the entry to record the mortgage loan on December 31, 2022, and the first installment payment on December 31, 2023.
Debit Credit General Journal Date January 31, 2021 Interest Expense Clear entry View general journal Record entry 3-b. How much of the first payment goes to interest expense and how much goes to reducing the carrying value of the loan? (Round your answers to 2 decimal places.) Reducing the Carrying Value Interest Expense First payment
On January 1 2021 Gundy Enterprises purchases an office building for $ 184,000 , paying $ 44.000 down and borrowing the remaining , signing a 7 % , 10 - year mortgage . Installment payments of are due at the end of each month , with the first payment due on January 31 , 2021 \$140,000 \$1,625.52 \$195,062(\$1,625.52*120 monthly payments ) . How much of this is interest expense 4. Total payments over the 10 years are and how much is actual payment of the loan ?
Carla Vista Company issues a 8%, 7-year mortgage note on January 1, 2022, to obtain financing for new equipment. Land is used as collateral for the note. The terms provide for semi-annual installment payments of $46,900. What are the cash proceeds received from the issuance of the note?
Carla Vista Resort Corp. issued a 20-year, 8%, $300,000 mortgage note payable to finance the construction of a new building on December 31, 2024. The terms provide for semi-annual instalment payments on June 30 and December 31. (a) Prepare the journal entries to record the mortgage note payable and the first two instalment payments assuming the payment is a fixed principal payment of $7,500. (Round answers to O decimal places, e.g. 5,276. List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles Issue of Note First Instalment Payment Second Instalment Payment Debit 11 Cred
All In Digital Bank granted a loan to a client on January 1, 2022. The interest on the loan is 10% payable annually starting December 31, 2022. The loan matures in three years on December 31, 2024. Pertinent information on the loan is provided below: Principal amount, P 1,000,000 Origination fee received from the borrower, P 55,200 Direct origination cost paid, P 30,770 Indirect origination cost paid, P 5,000 After considering the origination fee received from the borrower and the direct origination cost incurred, the effective rate on the loan is 11%. What is the carrying value of the loan receivable on December 31, 2023 in Megabank's accounting books?

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