1):
Mortgage Payable:
They are long term negotiable instruments of debt issued by corporate entities to secure assets. These are used to either fund long term capital expenditure or similar long term investment opportunities.
They represent steady income for the investor in the form of periodic interest payments by the entity issuing the mortgage and are issued at par, at premium or at a discount.
Journal entries are the first step in recording financial transactions and preparation of financial statements. These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.
Assets and expenses have debit balances and Liabilities and Incomes have credit balances.
2):
Mortgage Payable:
They are long term negotiable instruments of debt issued by corporate entities to secure assets. These are used to either fund long term capital expenditure or similar long term investment opportunities.
They represent steady income for the investor in the form of periodic interest payments by the entity issuing the mortgage and are issued at par, at premium or at a discount.
Journal entries are the first step in recording financial transactions and preparation of financial statements. These represent the impact of the financial transaction and demonstrate the effect on the accounts impacted in the form of debits and credits.
Assets and expenses have debit balances and Liabilities and Incomes have credit balances.
Journal Entry for the monthly payment of interest on January 31, 2018
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Chapter 14 Solutions
Horngren's Accounting, Student Value Edition (12th Edition)
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