Lucky Company borrowed $1,000,000 on December 31, 2017, by issuing $1,000,000, 8% mortgage note payable. The terms call forannual installment payments of $150,000 on December 31. 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. If no entry is required, select"No Entry" for the account titles and enter O for the amounts.)DateAccount Titles and ExplanationDec. 31,2017Dec. 31,2018Dec. 31,2019DebitCredit

Journal entries : The journal entries pertaining to mortgage note payable are as follows,…

Answered: Lucky Company borrowed $1,000,000 on…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, 20Y2, Hebron Company issued a $71,000, 4-year, 11% installment note to Ventsam Bank. The note requires annual payments of $22,885, beginning on December 31, 2012. Journalize the entries to record the following: 20Y2 Jan. 1 Issued the note for cash at its face amount. Dec. 31 Paid the annual payment on the note, which consisted of interest of $7,810 and principal of $15,075. 20Y5 Dec. 31 Paid the annual payment on the note, including $2,268 of interest. The remainder of the payment reduced the principal balance on the note. Issued the note for cash at its face amount. If an amount box does not require an entry, leave it blank. 20Y2 Jan. 1 Paid the annual payment on the note, which consisted of interest of $7,810 and principal of $15,075. If an amount box does not require an entry, leave it blank. 20Y2 Dec. 31 88 20Y5 Dec. 31 000 1 000 Paid the annual payment on the note, including interest of $2,268 of interest. The remainder of the payment reduced the principal balance on…
In January 1, 2020, Mega Corporation issued a $55,000, three-year, 6% installment note from Biggest Bank. The note requires annual payments of $20,576 beginning on December 31, 2020. Use this information to complete the following loan amortization table (round all of your answers to the nearest dollar). Amortization of Installment Note For the Year Ending Jan. 1st Carrying Amount Note Payment (Cash paid) Interest Expense (6%) Decrease in Principal Dec. 31st Carrying Amount 12/31/20 12/31/21 12/31/22
Purdum Farms borrowed $10 million by signing a five-year note on December 31, 2015. Repayments of the principal are payable annually in installments of $2 million each. Purdum Farms makes the first payment on December 31, 2016 and then prepares its balance sheet. What amount will be reported as current and long-term liabilities, respectively, in connection with the note at December 31, 2016, after the first payment is made? Zero in current liabilities and $10 million in long-term liabilities. $2 million in current liabilities and $6 million in long-term liabilities. $2 million in current liabilities and $8 million in long-term liabilities. Zero in current liabilities and $8 million in long-term liabilities.
Stafford Co. Issued $200,000 face value, 6%, 10-year bonds on January 1, 2017 for $172,740. The market rate of interest was 8%. Interest is payable semi-annually on June 30 and December 31. Staffer uses the effective interest method to amortize bond premium or discount. How would I Determine the amount of interest expense to be recorded with the first cash interest payment.
Sayed Company borrowed $40,000 on August 31, 2020, by issuing an 9-month, 9% interest-bearing note. The company prepares its financial statement annually at the end of December. Maturity date is: April 1, 2020 May 1, 2020 June 1, 2020 July 1, 2020 None of the above The adjusting entry to record the accrued interest on December 31, 2020 is: * Debit Interest Expense and Credit Interest Payable for $1,200 Debit Interest Expense and Credit Interest Payable for $1,500 Debit Interest Expense and Credit Cash for $3,600 Debit Interest Expense and Credit Interest Payable for $2,700 None of the above O O
Cullumber Company borrowed $313,000 on January 1, 2022, by issuing a $313,000, 10% mortgage note payable. The terms call for annual installment payments of $54,000 on December 31. (a) Prepare the journal entries to record the mortgage loan and the first two installment payments. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit ILOR Cred
On January 1, 2018, Paradiso Company issued 1,000 of its 8%, $1,000 bonds at 93. Interest is payable semiannually on June 30 and December 31. The bonds will mature on December 31, 2027. If the company uses straight-line amortization, determine the amount of interest expense for 2018. answer is 87,000 how do you get there?
Keesha Co. borrows $200,000 cash on November 1, 2017, by signing a 90-day, 9% note with a face value of $200,000. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest at the end of 2017, and (c) payment of the note at maturity. (Assume no reversing entries are made.)
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
Recording and Assessing the effect of installment loansOn December 31, 2015, Dehning Inc. borrowed $500,00 on 8%, 10 year - mortgage note payable. The note is to be repaid inn equal quarterly installments of $18,278 (beginning March 31, 2016).a. Prepare journal entries to reflect (1) the issuance of the mortgage note payable, (2) the payment of the first installment on March 31, 2016, and (3) the payment of the second installment on June 30, 2016. Round amounts to the nearest dollar. b. Post the journal entries of part a to their respective T accountsc. Record each of the transactions from part a in the financial statement effect template
On January 1, 2018, King Inc. borrowed $190,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $47,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.) If an amount box does not require an entry, leave it blank. Jan. 1 fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 Dec. 31 fill in the blank 8 fill in the blank 9 fill in the blank 11 fill in the blank 12 fill in the blank 14 fill in the blank 15
On September 1,2020, Sunland Company issued a note payable to Fidelity Bank in the amount of $2691000, bearing interest at 9%, and payable in three equal annual principal payments of $897000. On this date, the bank's prime rate was 10%. The first payment for interest and principal was made on September 1, 2021. At December 31, 2021, Sunland should record accrued interest payable of O $89700. O $80730. O $179400, O $53820.

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