US Weygandt, Financial Accounting: I-R5, 3 Assignment Gradebook ORION Downloadab

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US Weygandt, Financial Accounting: I-R5, 3 Assignment Gradebook ORION Downloadable eTextbook & Practice ssignment an Co. recenes €240,000 when it issues a €240,000, 696, mortgage note payable to finance the construction of a building at December 31, 2017. The terms provide for annual installment payments of 33,264 on December 31. RCES Prepare the journal entries to record the mortgage loan and the first two payments. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Study Dec. (To record issuance of note Dec. 31 (To record first installment payment) Dec. 31 (To record second installment payment) All Rights Reserved. A Division of John wiley & Sons.Inc

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit Dec 31 Building 240000 Mortgage notes payable 240000 (To record issue mortgage notes payable) Dec 31 Mortgage notes payable 18864 Interest expense (240000*.06) 14400 Cash 33264 (To record first installment paid) Dec 31 Mortgage notes payable 19996 Interest expense (240000-18864)*6% 13268 Cash 33264 (To record second installment paid)

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