E15-16

Jan 1, 2017 July 1, 2017 $12,500 Jan. 1, 2018 July l, 2018 Jan. 1, 2019 14,416 12,500 12,50014,474 12,500 2,033 486 457 14,533 balar he journal entry to record the payment of interest on July 1, 2017, the journal entry to accrue the interest expense on December 31, 2017, Instructions E15-19 (a) Prepare t (b) Prepare nstruc (a) Ca (b) Pr (c) Pr (d) W (c) Prepare the journal entry to record the payment of interest on January 1, 2018. (d) Prepa re the journal entry to record the redemption of the bonds assuming they were 1 January 1, 2019. Prepare the journal (e) entry to record the redemption of the bonds assuming they were re 7% $240,000 mortgage note payable to finance the a new building on December 31, 2017. The terms provide for semi- annua December 31 instalment payments on E15- Prepare the journal entries to record the mortgage note payable and the first two instalment payments the payment is (a) a fixed principal payment of $6,000. (b) a blended payment of $11,239. ent E1s-16 The following instalment payment schedule is for an instalment note payable rent Interest Period Jan. 1, 2017 Jan. 1, 2018 Jan. 1, 2019 Jan. 1, 2020 Jan. 1, 2021 Jan, 1, 2022 Cash Payment Interest Expense Reduction of Principal Principal al Balance $23,097 23,097 23,097 23,097 23,097 $5,000 4,095 3,145 2,147 1,100 $18,097 19,002 19,952 20,950 21,999 81,903 62,901 42,949 21,999 Instructions (a) Is this a fixed principal or blended payment schedule? (b) What is the interest rate on the note? (c) Prepare the journal entry to record the first instalment payment. (d) What are the non-current and current portions of the note at December 31, 2018