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.
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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.
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- LCD Industries purchased a supply of electronic components from Entel Corporation on November 1, 2024. In payment for the $25.1 million purchase, LCD issued a 1-year installment note to be paid in equal monthly payments at the end of each month. The payments include interest at the rate of 12%. Questions: 1. & 2. Prepare the journal entries for LCD’s purchase of the components on November 1, 2024 and the first installment payment on November 30, 2024. 3. What is the amount of interest expense that LCD will report in its income statement for the year ended December 31, 2024? Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)Current Attempt in Progress 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) Your Answer Correct Answer (Used) 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 Dec. 31, 2024 June 30, 2025 V Account Titles Issue of Note Cash Mortgage Note Payable First Instalment Payment Interest Expense Mortgage Note Payable Cash Debit 300,000 12,000 7,500…FinanceCo lent $8 million to Corbin Construction on January 1, 2018, to construct a playground. Corbin signed athree-year, 6% installment note to be paid in three equal payments at the end of each year.Required:1. Prepare the journal entry for FinanceCo’s lending the funds on January 1, 2018.2. Prepare an amortization schedule for the three-year term of the installment note.3. Prepare the journal entry for the first installment payment on December 31, 2018.4. Prepare the journal entry for the third installment payment on December 31, 2020.
- Use the following information for questions 7 to 8: Sarah Company started construction of its administration building at an estimated cost of P50,000,000 on January 1, 2020. The construction is expected to finish by December 31, 2022. Sarah has the following debt obligations outstanding during 2020: Construction loan - 12% interest payable semiannually, issued December 31, 2019 P 20,000,000 Short-term loan - 10% interest payable monthly, principal payable at maturity on January 1, 2021 14,000,000 Long-term loan - 11% interest payable on January 1 of each year. Principal payable on January 1, 2024 10,000,000 The weighted-average of the accumulated expenditures during 2020 was P36,000,000. How much interest expense should Sarah Company report in 2020? ans: 833,333 What amount of interest incurred in 2020 should be included in the cost of the building being constructed? ans: 4,066,667 Provide solutions.Construction loan-12% interest, payable semiannually, issued December 31, 2019 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 Ⓒ Whispering Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $3,000,000 on January 1, 2020. Whispering expected to complete the building by December 31, 2020. Whispering has the following debt obligations outstanding during the construction period. $1,200,000 840,000 600,000 Show Time Assume that Whispering completed the office and warehouse building on December 31, 2020, as planned at a total cost of $3.120,000, and the weighted average amount of accumulated expenditures was $2.160,000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes and round final…On January 1,2021, Eagle Company borrows $100,000 cash by signing a four-year, 7% installment note. The note requires four equal payments of $29,523, consisting of accrued interest and principal on December 31 of each year from 2021 through 2024. Prepare an amortization table for this installment note.
- Acruni Co. had the following loans in place at the beginning of 2019. 1 January 2019 GHC m 10% Bank loan repayable 2020 9.5% Bank loan repayable 2021 8.9% debenture repayable 2024 120 80 100 On 1 January 2019, Acruni Co began construction of a qualifying asset, a piece of machinery for a hydroelectric plant, using existing borrowings. Expenditure drawn down for the construction was GHC30 million on 1 January 2019, and GHC20 million on 1 October 2019. Surplus funds were invested temporarily at a rate of 2%. Required a) Calculate the borrowing costs that can be capitalized for the piece of machinery. b) Compute the cost of the machinery that will be reported in the statement of financial position as at December, 2019 ATES)[The following information applies to the questions displayed below] On January 1, 2021, Gundy Enterprises purchases an office building for $162,000, paying $42,000 down and borrowing the remaining $120,000, signing a 8%, 10-year mortgage. Installment payments of $1,455.93 are due at the end of each month, with the first payment due on January 31, 2021. Required: 1. Record the purchase of the building on January 1, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the purchase of the building.Required information [The following information applies to the questions displayed below.] On January 1, 2021, Stoops Entertainment purchases a building for $580,000, paying $110,000 down and borrowing the remaining $470,000, signing a 9%, 15-year mortgage. Installment payments of $4,767.05 are due at the end of each month, with the first payment due on January 31, 2021. 4. Total payments over the 15 years are $858,069 ($4,767.05 x 180 monthly payments). How much of this is interest expense and how much is actual payment of the loan? Interest expense Actual payments on the loan
- ! Required information [The following information applies to the questions displayed below.] On January 1, 2021, Stoops Entertainment purchases a building for $580,000, paying $110.000 down and borrowing the remaining $470,000, signing a 9%, 15-year mortgage. Installment payments of $4,767.05 are due at the end of each month, with the first payment due on January 31, 2021. Required: 1. Record the purchase of the building on January 1, 2021. (f no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Answer is not complete. No Date General Journal Debit Credit 1 January 01, 2021 Interest Expense 3,525 x Notes Payable 1,242 X Cash 4,767 XIvanhoeFurniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $10,500,000 on January 1, 2020. Ivanhoe expected to complete the building by December 31, 2020. Ivanhoe has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2019 $4,200,000 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 3,150,000 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 2,100,000 Assume that Ivanhoe completed the office and warehouse building on December 31, 2020, as planned at a total cost of $10,920,000, and the weighted-average amount of accumulated expenditures was $7,560,000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes and…On January 1, 2021, Gundy Enterprises purchases an office building for $184,000, paying $44.000 down and borrowing the remaining $140,000signing a 7%10-year mortgageInstallment payments of $are due at the end of each monthwith the first payment due on January 31, 2021 Required: 1. Record the purchase of the building on January 12021. (no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
