Acct 202 question 1

Part 2: Solve the following problems in the space provided or an attached extra page. 1.) On January 1, 20X1 May Co. borrows $200,000 to buy a building. The money was obtained via a mortgage note, which calls for semi-annual payments on January 1 and July 1. The note has a 5-year term, an annual interest rate of 6%, and the first payment of $23,447 is due July 1, 20X1. The amortization schedule for years 20X1 and 20X2 is as follows: Carrying Interest Carrying Date value(beg.) CVx.03 Payment Amortization value(end) 1/1/20x1 200,000 1/1/20x2 182.553 5.477 23,447 (17,970) 164,583 7/1/20x2 164,583 4,937 23,447 (18,510) 146,073 Required: a. Prepare the necessary joumal entries for 20Xland 20X2