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Need help for D Question 6 Carla Vista Electronics issues a $655,000, 10-year, 7% mortgage note payable on December 31, 2017, to help finance a
Need help for D
Question 6 Carla Vista Electronics issues a $655,000, 10-year, 7% mortgage note payable on December 31, 2017, to help finance a plant expansion. The terms of the note provide for semi-annual blended payments of $46,087. Payments are due on June 30 and December 31. (a) Your answer is correct. Prepare an instalment payment schedule for the first two years. (Round answers to 0 decimal places, e.g. 5,276.) Semi-annual Interest Period Cash Payment Interest Expense Reduction of Principal Principal Balance Dec. 31, 2017 655000 June 30, 2018 46087 22925 23162 631838 Dec. 31, 2018 46087 22114 23973 607865 June 30, 2019 46087 21275 24812 583053 Dec. 31, 2019 46087 20407 25680 557373 Show how the mortgage liability should be reported on the balance sheet at December 31, 2017. (Round answers to 0 decimal places, e.g. 5,276. Enter account name only and do not provide descriptive information.) CARLA VISTA ELECTRONICS Balance Sheet (Partial) December 31, 2017 Current Liabilities Current Portion of Mortgage Note Payable 47135 Non-Current Liabilities Mortgage Note Payable 607865 SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT (d) Record the first two instalment payments on June 30, 2018, and December 31, 2018. (Round answers to 0 decimal places, e.g. 5,276. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit June 30 Dec. 31 SHOW LIST OF ACCOUNTSStep by Step Solution
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