Question
Kahl Company purchased a building and land with a fair market value of $ 400 000 (building, $ 225000 and land, $ 175000) on January
Kahl Company purchased a building and land with a fair market value of $ 400 000 (building, $ 225000 and land, $ 175000) on January 1, 2018. Kahl signed a 15-year, 5% mortgage payable. Kahl will make monthly payments of $ 3 163.17. Round to two decimal places. Explanations are not required for journal entries.
Requirements
| 1. | Journalize the mortgage payable issuance on January 1, 2018. |
| 2. | Prepare an amortization schedule for the first two payments. |
| 3. | Journalize the first payment on January 31, 2018. |
| 4. | Journalize the second payment on February 28, 2018. |
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
