Colt Electronics issues an $600,000, 8%, 10-year mortgage note on December 31, 2010, to help finance a

Question:

Colt Electronics issues an $600,000, 8%, 10-year mortgage note on December 31, 2010, to help finance a plant expansion program. The terms provide for semiannual installment payments, not including real estate taxes and insurance, of $44,149. Payments are due June 30 and December 31.

Instructions

(a) Prepare an installment payments schedule for the first 2 years.

(b) Prepare the entries for

(1) The mortgage loan and

(2) The first two installment payments.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...