Talkington Electronics issues a $400,000, 8%, 10-year mortgage note on December 31, 2016. 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 $59,612. Payments are due on December 31. Prepare the entries for (1) the loan and (2) the first installment payment

Q: John issued a $1,300,000, 10%, 10-year mortgage note on December 31, 2020, to obtain financing for a…

A: a. To record the mortgage loan on December 31, 2020:Date: December 31, 2020Debit: Building (or…

Q: Cucina Corporation signed a new installment note on January 1, 2021, and deposited the proceeds of…

A: Step 1:Step 2:Step 3:Step 4:

Q: Samco signed a 9-year note payable on January 1, 2025, of $540,000. The note requires annual…

A: Detailed explanation:Face value of the note $ 540,000 ,  interest rate 6% , issued January 1, 2025…

Q: On January 1, 2016, Brubeck Company purchased equipment and signed a six-year mortgage note for…

A: The amount of mortgage payable needs to be determined after the payment of first installment which…

Q: Cullumber Inc. issues an $740,000, 10%, 10-year mortgage note on December 31, 2022, to obtain…

A: Journal Entry is the primary step to record the transaction in the books of accounts. The increase…

Q: On January 1, 2021, Stoops Entertainment purchases a building for $580,000, paying $110,000 down and…

A: Solution 2: Date Cash Paid Interest Expense Decrease in Carrying value Carrying value 1-Jan-21…

Q: Cullumber Electronics issues a $355,500, 3%, 10-year mortgage note on December 31, 2021. The…

A: Interest = Loan amount x rate of interest x no. of months in calendar year /12 months Loan Payment =…

Q: Alaska Inc. borrowed $16,000 by signing a one-year note payable on November 1, 2020. The note bears…

A: Formula: Interest expense = Notes amount x Interest rate x Time period

Q: Jason purchased a new piece of equipment to be used in its new facility. The $450,000 piece of…

A: schedule  of long term installment  Annual installment period Cash payment Interest expense…

Q: On October 1, 2021, Oberley Corporation loans one of its employees $24,000 and accepts a 12-month,…

A: Using accrual basis accounting, the revenue is earned and recorded in the period it is actually…

Q: Cucina Corporation signed a new installment note on January 1, 2021, and deposited the proceeds of…

A: Beginning Notes Payable Interest Expense Repaid Principal on Notes Payable Ending Notes Payable…

Q: On January 1, 2021, Gundy Enterprises purchases an office building for $261,000, paying $51,000 doWH…

A: Solution 3a: Journal Entries Date Particulars Debit Credit 31-Jan-21 Interest expense…

Q: On January 1, 2021, Stoops Entertainment purchases a building for $550,000, paying $110,000 down and…

A: Solution 3a: Journal Entries Date Particulars Debit Credit 31-Jan-21 Interest expense…

Q: On January 1, 2024, Oriole Corp. borrows $16,800 by signing a 3-year, 6% note payable. The note is…

A: The objective of the question is to prepare the journal entries for the borrowing of money by Oriole…

Q: On January 1, 2021, Stoops Entertainment purchases a building for $580,000, paying $110,000 down and…

A: Solution: Journal Entries Date Particulars Debit Credit 31-Jan-21 Interest expense…

Q: Blossom Company receives $240,000 when it issues a $240,000, 10%, mortgage note payable to finance…

A: Amortization schedule of a mortgage note for two years: AnnualInterestPeriod CashPayment…

Q: On January 1, 2021, Gundy Enterprises purchases an office building for $261,000, paying $51,000 down…

A: Cash paid = $51,000 Note = $210,000 Purchase price of building = $261,000

Q: On January 1, 2018, Allgood Company purchased equipment and signed a six =year mortgage note for…

A: For calculating interest expense, we will need to make amortization schedule of loan over a period…

Q: E15-9B Base Line Co. receives $250,000 when it issues a $250,000, 8%, mortgage note payable to…

A: A mortgage is a type of loan used to finance the purchase of a property, such as a house or a…

Q: Jones Company signed a 5-year note payable on January 1, 2020, of $100,000. The note requires annual…

A: Interest = Principal Balance x Rate x Time

Q: her Information The note payable to Southern Bank is due in 60 days. Arrangements have been made to…

A: Answer: Since the note payable to N bank is due in 60 days, it is considered as a current liability.…

Q: On January 1, 2024, Royal Paradise borrows $42,000 by agreeing to a 5%, four-year note with the…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: On January 1, 2018, King Inc. borrowed $190,000 and signed a 5-year, note payable with a 10%…

A: Note payable: The person borrows an amount and issue a note to the lender that he will pay the…

Q: the pita pit borrowed 197000 on november 1 2021 and signed a six month note bearing interest at 12%.…

A: Interest expense = Principal amount x Interest rate x Time period

Q: Sunland Company borrowed $760,000 on December 31, 2019, by issuing an $760,000, 9% mortgage note…

A: Note payable refers to the agreement made between the parties to repay the sum at maturity with…

Q: The following selected transactions relate to liabilities of United Insulation Corporation. United’s…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: Blue Spruce Corp. issues an $880,000, 15%, 10-year mortgage note on December 31, 2020, to obtain…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: LCD Industries purchased a supply of electronic components from Entel Corporation on November 1,…

A: A note payable is a formal commitment in writing by a borrower to pay back a lender a certain sum of…

Q: In January 1, 2020, Mega Corporation issued a $55,000, three-year, 6% installment note from Biggest…

A: In January 1, 2020, Mega Corporation issued a $55,000, three-year, 6% installment note from Biggest…

Q: On January 1, 2021, Stoops Entertainment purchases a building for $580,000, paying $110,000 down and…

A: Req-1       Date General Journal Debit Credit         January 01, 2021 Buildings $5,80,000…

Q: Dan Dayle started a business by issuing an $83,000 face value note to First State Bank on January 1,…

A: Interest is computed as per the following formula Interest=Principal*rate*term

Q: Cullumber Company borrowed $313,000 on January 1, 2022, by issuing a $313,000, 10% mortgage note…

A: Notes payable is a written promissory agreement, wherein a borrower borrows a certain amount of…

Q: On January 1, 2018, King Inc. borrowed $190,000 and signed a 5- year, note payable with a 10%…

A: The journal entries are prepared to keep the record of day to day transactions of the business.