Kamin, Corp., completed the following transactions in 201 2: Jan 1 Purchased a building costing $150,000 and

Question:

Kamin, Corp., completed the following transactions in 201 2:
Jan 1 Purchased a building costing $150,000 and signed a 12%, 20-year 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 $3,000 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 Leased 10 copiers and signed a four-year lease with the option to buy the copiers at the end of the fourth year at a bargain price. Under terms of the lease, monthly lease payments do not start until January 31, 2014. The present value of the lease payments is $30,000.
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 $150,000 mortgage note, assuming semiannual payments of $10,897. Round amounts to the nearest dollar

2. Record the journal entries for the 2012 transactions.
3. Prepare the long-term liabilities section of the balance sheet on December 31,2012.

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...