Nance Co. receives $298,700 when it issues a $298,700, 7%, mortgage note payable

Question

Nance Co. receives $298,700 when it issues a $298,700, 7%, mortgage note payable to finance the construction of a building at December 31, 2014. The terms provide for semiannual installment payments of $16,241 on June 30 and December 31.

Semiannual
Interest
Period

Cash
Payment

Interest
Expense

Reduction
of Principal

Principal
Balance

Show List of Accounts

Link to Text

Date

Account Titles and Explanation

Debit

Credit

Dec. 31, 2014

Show List of Accounts

Link to Text

Date

Account Titles and Explanation

Debit

Credit

First Installment Payment

Second Installment Payment

Nance Co. receives $298,700 when it issues a $298,700, 7%, mortgage note payable to finance the construction of a building at December 31, 2014. The terms provide for semiannual installment payments of $16,241 on June 30 and December 31.

Explanation / Answer

Nance Co. receives $298,700 when it issues a $298,700, 7%, mortgage note payable

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

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