Question
Sunland Company receives $282,000 when it issues a $282,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2022. The
Sunland Company receives $282,000 when it issues a $282,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2022. The terms provide for annual installment payments of $47,000 on December 31.
Prepare an amortization schedule of a mortgage note for two years.
Annual Interest Period | Cash Payment | Interest Expense | Reduction of Principal | Principal Balance | ||||
---|---|---|---|---|---|---|---|---|
Issue date | $enter a dollar amount rounded to 0 decimal places | $enter a dollar amount rounded to 0 decimal places | $enter a dollar amount rounded to 0 decimal places | $enter a dollar amount rounded to 0 decimal places | ||||
12/31/23 | enter a dollar amount rounded to 0 decimal places | enter a dollar amount rounded to 0 decimal places | enter a dollar amount rounded to 0 decimal places | enter a dollar amount rounded to 0 decimal places | ||||
12/31/24 | enter a dollar amount rounded to 0 decimal places | enter a dollar amount rounded to 0 decimal places | enter a dollar amount rounded to 0 decimal places | enter a dollar amount rounded to 0 decimal place |
Prepare the journal entry to record the mortgage loan. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
Dec. 31, 2022 | enter an account title for the journal entry on December 31, 2022 | enter a debit amount | enter a credit amount |
enter an account title for the journal entry on December 31, 2022 | enter a debit amount | enter a credit amount |
Prepare the journal entries to record the first two installment payments. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
First Installment Payment | |||
Dec. 31, 2023 | enter an account title for the journal entry on December 31, 2023 | enter a debit amount | enter a credit amount |
enter an account title for the journal entry on December 31, 2023 | enter a debit amount | enter a credit amount | |
enter an account title for the journal entry on December 31, 2023 | enter a debit amount | enter a credit amount | |
Second Installment Payment | |||
Dec. 31, 2024 | enter an account title for the journal entry on December 31, 2019 | enter a debit amount | enter a credit amount |
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