Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing

Authors: Alan H. Millichamp

8th Edition

082645500X, 9780826455000

More Books

Students also viewed these Accounting questions

Question

4 What is the recruitment phase?

Answered: 1 week ago