Question
ABC Lab Corp. issues a $980,000, 5.25%, 12-year mortgage note on December 31, 2019. The terms of the note provide for annual install payments, exclusive
ABC Lab Corp. issues a $980,000, 5.25%, 12-year mortgage note on December 31, 2019. The terms of the note provide for annual install payments, exclusive of real estate taxes and insurance, of $100,000. Payments are due on December 31.
- Complete the following table
| Annual Interest Period | Cash Payment | Interest Expense | Reduction of Principal | Principal Balance |
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b) Record the journal entry of issuing mortgage note on December 31, 2019
| Date | Accounting Titles | Debit | Credit |
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c) Record the journal entry of first installment payment on December 31, 2020
| Date | Accounting Titles | Debit | Credit |
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d) Record the journal entry of second installment payment on December 31, 2021
| Date | Accounting Titles | Debit | Credit |
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Connect For Financial Accounting
Authors: Author
6th Edition
1264140304, 9781264140305
