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Kessel Company purchased a building and land with a fair market value of 575,000 (building, 475,000, and land 100,000) on January 1, 2018 Kessel signed

Kessel Company purchased a building and land with a fair market value of 575,000 (building, 475,000, and land 100,000) on January 1, 2018 Kessel signed a 25-year, 15% mortage payable. Kessel will make monthly payments of 7,364.78. Round to two decimal places. No explenations required.

Requirements:

1.Journalize the mortage payable issuance on january 1, 2018......I have Done the entry as pictured below.

2. Prepare an amortization schedule for the fist two payments..... I got some of the numbers in there not sure if I did it correctly

3. Journalize the first payment on January 31, 2018.

4. Journalize the second payment on February 28, 2018.

Requirement 1. Journalize the mortgage payable issuance on January? 1,

2018.

?(Record debits? first, then credits. Exclude explanations from any journal? entries.)

Date

Accounts

Debit

Credit

2018

Jan. 1

Building

475,000.00

Land

100,000.00

Mortgage Payable

575,000.00

Requirement 2. Prepare an amortization schedule for the first two payments. ?(Round all numbers to the nearest? cent.)

Beginning

Principal

Interest

Total

Ending

Balance

Payment

Expense

Payment

Balance

1/1/2018

575,000

1/31/2018

575,000

177.28

7,187.50

7,364.78

574,822.72

2/28/2018

574,822.72

179.50

7185.30

7,364.78

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