Use Excel for the entire assignment. When applicable, you must also use the full financial statement effects template (i.e., no short-hand approach).

Question 2 (Mortgages Payable)

Brian M. owes a mortgage on his primary home.The mortgage terms are as follows:

Amount due as of 1/1/2013: ?

Mortgage loan period: 25 years

Annual interest rate:4.20%

Monthly payment amount (starting on 1/31/2013): $1,025.00

Required

Scenario 1: Using the above information, create a complete amortization table to determine the following information

oAmount due as of 1/1/2013 (use the appropriate TVM function in Excel to determine this)

oTotal interest to be paid as of the final payment date

Scenario 2: Brian M. decides to apply an extra $175.00 per month toward his mortgage. Use the amount due as of 1/1/2013 calculated in Scenario 1 as the initial mortgage loan balance. Based on above information, create a complete amortization table to determine the following information.

oTotal interest to be paid as of the final payment date

oInterest savings relative to Scenario 1 (if any)

oTime savings (i.e., how much sooner the mortgage is repaid) relative to Scenario 1 (if any)

Question 3 (Equity)

Rockies Company goes public on April 10, 20x1 and has a 12/31 fiscal year-end. The Company has 300,000 authorized common shares. Related to going public, the Company has the following transactions in 20x1:

On April 10^th, the Company issues 47,000 common shares at $8.00 per share. The par value of the common shares is $2.00 per share.

On May 20^th, the Company repurchases 7,800 common shares at $11.00 per share.

On August 10^th, the Company declares a $0.30 per share cash dividend for all common shares outstanding (be careful in determining this). The date of record for the dividend is August 28^th. The date of payment for the dividend is September 15^th.

On September 30^th, the Company reissues 4,800 treasury shares for $13.00 per share.

On October 10^th, the Company declares a $0.30 per share cash dividend for all common shares outstanding (be careful in determining this). The date of record for the dividend is October 28^th. The date of payment for the dividend is November 15^th.

Required

Provide the financial statement template effects for all the transactions listed above. Also, include a brief description for memorandum items (i.e., events that occur, but do not result in an accounting transaction) within the template.

Show how all relevant equity accounts should be formally reported on the Companys balance sheet as of December 31, 20x1. In other words, show me a snapshot of these accounts on the balance sheet. The 20x1 net income for the Company is $105,000 and its January 1, 20x1 balance in retained earnings is $635,000.