Question
9/4-You decided to purchase an office building for your business. The cost of the office was $200,000. Pig E. Bank agreed to finance the purchase
9/4-You decided to purchase an office building for your business. The cost of the office was $200,000. Pig E. Bank agreed to finance the purchase and offered you a 30-year 6.0% mortgage and required you to make a 10% down payment. You made the deposit by issuing check #104. You monthly payments will be due on the fourth of each month. The first monthly note is due on October 4.
9/30-You accrued interest on the Pig E. Bank mortgage. Use 360 days in the year to calculate the interest. The payment terms are 1/10, net 30.
10/4-You make the first monthly payment to Pig E. Bank by issuing check #110. Use your financial calculator to determine the amount of the payment, principal and interest. Show all calculations in your journal. I need the journal entry and calculations for the October 4th transaction. Thanks.
Date | Account Title | Debit | Credit |
9/4 | Office Building | $200,000 | |
Notes Payable (long-term | 180,000 | ||
Cash | 20,000 | ||
9/30 | Interest Expense | $780 | |
Interest Payable | 780 | ||
10/4 | I need the correct account titles and amounts plus calculations for the October 4th transaction. | ||
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