Paiscik Corp. completed the following transactions in 2018:

Jan 1 Purchased a building costing $190,000 and signed a 10%, 15-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 $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 Leased 8 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, 2020. The present value of the lease payments is $32,000.31 Made the second semiannual payment on the mortgage note payable.

Requirements

1. Complete the following amortization schedule for the first four payments on the $190,000 mortgage note, assuming semiannual payments of $12,360. Round amounts to the nearest dollar.

2. Record the journal entries for the 2018 transactions.

3. Prepare the long-term liabilities section of the balance sheet on December 31, 2018.

Transcribed Image Text:

Payment Interest Principal Loan Balance Date Jan 1, 2018 Jun 30, 2018 Dec 31, 2018 Jun 30, 2019 Dec 31, 2019 $190,000 $12,360