A company has a $500,000 30 year fixed loan payable at an interest rate of 4% monthly loan payments are set at $2,387.08. for the first month’s payment, the interest portion of the payment is $1,666.67. the entry to record the first months loan payment ( assuming no previous accrual) would include a debit to cash in the amount of $1666.67 loan payable in the amount of $2,387.08 interest expense for $1666.67 cash in the amount of $ 2,382.08
A company has a $500,000 30 year fixed loan payable at an interest rate of 4% monthly loan payments are set at $2,387.08. for the first month’s payment, the interest portion of the payment is $1,666.67. the entry to record the first months loan payment ( assuming no previous accrual) would include a debit to cash in the amount of $1666.67 loan payable in the amount of $2,387.08 interest expense for $1666.67 cash in the amount of $ 2,382.08
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 17P
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A company has a $500,000 30 year fixed loan payable at an interest rate of 4% monthly loan payments are set at $2,387.08. for the first month’s payment, the interest portion of the payment is $1,666.67. the entry to record the first months loan payment ( assuming no previous accrual) would include a debit to
cash in the amount of $1666.67
loan payable in the amount of $2,387.08
interest expense for $1666.67
cash in the amount of $ 2,382.08
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