Exercise 10-24 Sandhill Co. receives $385,000 when it issues a $385,000, 5%, mor

Question

Exercise 10-24 Sandhill Co. receives $385,000 when it issues a $385,000, 5%, mortgage note payable to finance the construction of a building at December 31, 2017. The terms provide for annual installment payments of $37,092 on December 31 Prepare an amortization schedule of a mortgage note for two years. (Round answers to 0 decimal places, e.g. 5,275.) Annual Interest Period Cash Payment Interest Expense Reduction of Principal Principal Balance Issue date 12/31/18 12/31/19 SHOW LIST OF ACCOUNTS LINK TO TEXT VIDEO: SIMILAR EXERCISE

Explanation / Answer

Annual interest period Cash payment Interest expense Reduction of principal Principal balance Issue date 385000 12/31/2018 37092 19250 17842 367158 12/31/2019 37092 18358 18734 348424 Dec-31-17 Cash 385000        Notes Payable 385000 Dec-31-18 Interest expense 19250 Notes Payable 17842        Cash 37092 Dec-31-19 Interest expense 18358 Notes Payable 18734        Cash 37092

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