Jordan, Corp. completed the following transactions in 2014:

Jan 1 Purchased a building costing $100,000 and signed a 10-year, 10% mortgage note payable for the same amount.

Jun 30 Made the first semiannual payment on the mortgage note payable.

Dec 1 Signed a five-year lease to rent a warehouse for $7,000 per month due at the end of each month. The lease is considered an operating lease.

31 Paid for one month€™s rent on the warehouse.

31 Purchased 10 copiers and signed a $40,000, four-year lease with the option to buy the copiers at the end of the fourth year at a bargain price.

31 Made the second semiannual payment on the mortgage note payable.

Requirements

1. Complete the following amortization schedule for the first four mortgage payments on the $100,000 mortgage note, assuming semiannual payments of $8,024.

2. Record the journal entries for the 2014 transactions.
3. Prepare the long-term liabilities section of the balance sheet on December 31, 2014.

Transcribed Image Text:

DatePayment Interest Principal Loan Balance S100,000 Jan 1, 2014 Jun 30, 2014 $8,024 Dec 31, 2014 Jun 30, 2015 Dec 31, 2015