On January 1, 2018, Wong Corporation signed a mortgage note for $5,000,000 at 8 percent for a

Question:

On January 1, 2018, Wong Corporation signed a mortgage note for $5,000,000 at 8 percent for a term of five years. Mortgage payments are made semi-annually on June 30 and on December 31. Each mortgage payment is a blend of interest on the unpaid amount and a partial repayment of the principal loan.

Required:
1. Compute the amount of each mortgage payment.
2. Record the mortgage payments on June 30, 2018, and December 31, 2018.
3. What is the current portion of the mortgage at December 31, 2018? What portion of the mortgage would appear as long-term debt on the statement of financial position at that same date?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

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