Mortgage Payable Mortgages payable is referred to the long-term debts owed by the business that are secured with the specific assets of the business. In other words under mortgages payable, the borrower promises to transfer the legal ownership of some specified assets, pledged as collateral security, in the event of non-payment of the mortgages debt on maturity to the creditor. Like the long-term debt, the total mortgages payable has some current portion that is required to be paid within a year and some other portion that is paid after one year. To Journalize: The purchase of building and land at their market value.

Question

Want to see the full answer?

Answer 1

Question

Chapter 12, Problem 12.2SE

1.

To determine

Mortgage Payable

Mortgages payable is referred to the long-term debts owed by the business that are secured with the specific assets of the business. In other words under mortgages payable, the borrower promises to transfer the legal ownership of some specified assets, pledged as collateral security, in the event of non-payment of the mortgages debt on maturity to the creditor. Like the long-term debt, the total mortgages payable has some current portion that is required to be paid within a year and some other portion that is paid after one year.

To Journalize: The purchase of building and land at their market value.

2.

To determine

To Journalize: The first monthly payment of $4,561 on January 31, 2016.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Grass Reed Bayou is a bottling company in The Netherlands. The company uses a normal costing system in which factory overhead is applied on the basis of direct labor costs. Budgeted factory overhead for the year was $680,000, and management budgeted $320,000 of direct labor costs. During the year, the company incurred the following actual costs. Direct materials used $ 382,000 Direct labor 313,000 Factory overhead 650,700 The January 1 balances of inventory accounts are shown below. Materials-all direct $ 64,000 Work-in-process 41,400 Finished goods 25,600 The December 31 balances of these inventory accounts were ten percent lower than the balances at the beginning of the year. The cost of goods manufactured during the year is:

Magna Carta Interiors is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 150,000 and estimated factory overhead is $1,140,000. The following information is for September. Job X was completed during September, while Job Y was started but not finished. September 1, inventories: Materials $ 25,700 Work-in-process (All Job X) 55,100 Finished goods 107,300 Materials purchases $ 174,000 Direct materials requisitioned: Job X $ 75,700 Job Y 69,700 Direct labor hours: Job X 8,700 Job Y 7,200 Labor costs incurred: Direct labor ($7.70 per hour) $ 122,430 Indirect labor 50,100 Factory supervisory salaries 12,800 Rental costs: Factory $ 11,000 Administrative offices 4,900 Total equipment depreciation costs: Factory $ 12,100 Administrative offices 4,500 Indirect materials used $ 30,400 The total…

Grass Reed Bayou is a bottling company in The Netherlands. The company uses a normal costing system in which factory overhead is applied on the basis of direct labor costs. Budgeted factory overhead for the year was $680,000, and management budgeted $320,000 of direct labor costs. During the year, the company incurred the following actual costs. Direct materials used $ 382,000Direct labor 313,000Factory overhead 650,700The January 1 balances of inventory accounts are shown below. Materials-all direct $ 64,000Work-in-process 41,400Finished goods 25,600The December 31 balances of these inventory accounts were ten percent lower than the balances at the beginning of the year. The cost of goods manufactured during the year is:

Answer 2

Question

Chapter 12, Problem 12.2SE

1.

To determine

Mortgage Payable

Mortgages payable is referred to the long-term debts owed by the business that are secured with the specific assets of the business. In other words under mortgages payable, the borrower promises to transfer the legal ownership of some specified assets, pledged as collateral security, in the event of non-payment of the mortgages debt on maturity to the creditor. Like the long-term debt, the total mortgages payable has some current portion that is required to be paid within a year and some other portion that is paid after one year.

To Journalize: The purchase of building and land at their market value.

2.

To determine

To Journalize: The first monthly payment of $4,561 on January 31, 2016.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 12, Problem 12.2SE

1.

To determine

Mortgage Payable

Mortgages payable is referred to the long-term debts owed by the business that are secured with the specific assets of the business. In other words under mortgages payable, the borrower promises to transfer the legal ownership of some specified assets, pledged as collateral security, in the event of non-payment of the mortgages debt on maturity to the creditor. Like the long-term debt, the total mortgages payable has some current portion that is required to be paid within a year and some other portion that is paid after one year.

To Journalize: The purchase of building and land at their market value.

2.

To determine

To Journalize: The first monthly payment of $4,561 on January 31, 2016.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 12, Problem 12.2SE

1.

To determine

Mortgage Payable

Mortgages payable is referred to the long-term debts owed by the business that are secured with the specific assets of the business. In other words under mortgages payable, the borrower promises to transfer the legal ownership of some specified assets, pledged as collateral security, in the event of non-payment of the mortgages debt on maturity to the creditor. Like the long-term debt, the total mortgages payable has some current portion that is required to be paid within a year and some other portion that is paid after one year.

To Journalize: The purchase of building and land at their market value.

2.

To determine

To Journalize: The first monthly payment of $4,561 on January 31, 2016.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 12, Problem 12.2SE

1.

To determine

Mortgage Payable

Mortgages payable is referred to the long-term debts owed by the business that are secured with the specific assets of the business. In other words under mortgages payable, the borrower promises to transfer the legal ownership of some specified assets, pledged as collateral security, in the event of non-payment of the mortgages debt on maturity to the creditor. Like the long-term debt, the total mortgages payable has some current portion that is required to be paid within a year and some other portion that is paid after one year.

To Journalize: The purchase of building and land at their market value.

2.

To determine

To Journalize: The first monthly payment of $4,561 on January 31, 2016.

Answer 6

Chapter 12, Problem 12.2SE

1.

To determine

Mortgage Payable

Mortgages payable is referred to the long-term debts owed by the business that are secured with the specific assets of the business. In other words under mortgages payable, the borrower promises to transfer the legal ownership of some specified assets, pledged as collateral security, in the event of non-payment of the mortgages debt on maturity to the creditor. Like the long-term debt, the total mortgages payable has some current portion that is required to be paid within a year and some other portion that is paid after one year.

To Journalize: The purchase of building and land at their market value.

Answer 7

Chapter 12, Problem 12.2SE

1.

To determine

Mortgage Payable

Mortgages payable is referred to the long-term debts owed by the business that are secured with the specific assets of the business. In other words under mortgages payable, the borrower promises to transfer the legal ownership of some specified assets, pledged as collateral security, in the event of non-payment of the mortgages debt on maturity to the creditor. Like the long-term debt, the total mortgages payable has some current portion that is required to be paid within a year and some other portion that is paid after one year.

To Journalize: The purchase of building and land at their market value.

Answer 8

2.

To determine

To Journalize: The first monthly payment of $4,561 on January 31, 2016.

Answer 9

2.

To determine

To Journalize: The first monthly payment of $4,561 on January 31, 2016.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 13

Ch. 12 - Flipco signed a 10-year note payable on January 1,...Ch. 12 - Daniels's bonds payable carry a stated interest...Ch. 12 - A bond that matures in installments at regular...Ch. 12 - Prob. 4QC Ch. 12 - Nicholas Smith Fitness Gym has 700,000 of 20-year...Ch. 12 - Prob. 6QC Ch. 12 - Prob. 7QC Ch. 12 - The debt to equity ratio is calculated as a. Total...Ch. 12 - Mike Gordon wishes to have 80,000 in five years....Ch. 12 - Prob. 10BQC

Solution Summary: The author explains that mortgages payable are long-term debts owed by a business that are secured with the specific assets of the business. The amount of mortgage payable would be the net value of building and land minus the cash

Videos

To Journalize: The first monthly payment of $4,561 on January 31, 2016.

Want to see the full answer?

Chapter 12 Solutions