Question
Show the statement of financial position presentation of the mortgage payable at June 30, 2022. INTERACTIVE COMPUTER COMPANY Statement of Financial Position (Partial) Current liabilities
Show the statement of financial position presentation of the mortgage payable at June 30, 2022.
| INTERACTIVE COMPUTER COMPANY Statement of Financial Position (Partial) | |||
| Current liabilities | |||
| $ | |||
| Non-current liabilities | |||
Interactive Computer Company signed a 10-year, 5.50%, $900,000 mortgage on June 30, 2021, to help finance a new repair center. The mortgage terms provide for semi-annual payments of $59,105. Payments are due on December 31 and June 30. The companys year end is June 30.
(a)
Correct answer iconYour answer is correct.
Prepare an instalment payment schedule for the first two years. (Round answers to the nearest whole dollar, e.g. 5,275.)
| Semi-annual Interest Period | Cash Payment | Interest Expense | Reduction of Principal | Principal Balance | |||||
| June 30, 2021 | $ | ||||||||
| Dec. 31, 2021 | $ | $ | $ | ||||||
| June 30, 2022 | |||||||||
| Dec. 31, 2022 | |||||||||
| June 30, 2023 |
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus
8th edition
77861620, 978-0077861629
