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Problem 10-5A (Part Level Submission) Talkington Electronics issues a $400,000, 890, 10-year mortgage note on December 31, 2016. The proceeds from the note are to
Problem 10-5A (Part Level Submission) Talkington Electronics issues a $400,000, 890, 10-year mortgage note on December 31, 2016. The proceeds from the note are to be used in financing a new research laboratory. The terms of the note provide for annual installment payments, exclusive of real estate taxes and insurance, of $59,612 Payments are due on December 31 Your answer is correct. Prepare an installment payments schedule for the first 4 years. (Round answers to 0 decimal places, e.g. 15,250.) Annual Int eriodCash PaymentInterest ExpenseReduction of Principal Principal Balance Issue Date 32000 29791.04 27405.36 24828.83 400000 372388 342567.04 310360.40 275577.24 59612 59612 59612 59612 27612 29820.96 32206.64 34783.17 4 SHOW LIST OF ACCOUNTS SHOW ANSWER LINK TO TEXT LINK TO TEXT Attempts: 2 of 3 used Your answer is partially correct. Try again Prepare the entries for (1) the loan and (2) the first installment payment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Dec. 31, 2016 | | Cash 400000 Bonds Payable 400000 Dec. 31, 2017 TTPremium on Bonds Payable 27612 Interest Expense 32000 Cash 59612
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