On January 1, 2018, Gundy Enterprises purchases an office for $173,000, paying $

Question

On January 1, 2018, Gundy Enterprises purchases an office for $173,000, paying $43,000 down and borrowing the remaining $130,000, signing a 9%, 10-year mortgage. Installment payments of $1,646.79 are due at the end of each month, with the first payment due on January 31, 2018.

Required:

1. Record the purchase of the building on January 1, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. Complete the first three rows of an amortization schedule. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)

Explanation / Answer

1) Journal entry :

2) Amortization schedule :

Date account and explanation debit credit Building 173000 Cash 43000 Mortgage notes payable 130000 (TO record purchase of building)

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.