Keel Company purchased a building and land with a fair market value of $650,000 (building, $550,000 and land, $100,000) on January 1, 2018. Keel signed a 20-year, 8% mortgage payable. Keel will make monthly payments of $5,436.86. Round to two decimal places. Explanations are not required for journal entries. 1.Journalize the mortgage payable issuance on January 1,2018.2.Prepare an amortization schedule for the first two payments.3.Journalize the first payment on January 31,2018.4.Journalize the second payment on February 28,2018. Requirement 2. Prepare an amortization schedule for the first two payments. (Round all numbers to the nearest cent.) BeginningPrincipalInterestTotalEnding BalancePaymentExpensePaymentBalance1/1/2018 1/31/2018 2/28/2018

Journal entries are recording of the transaction in the accounting journal in a chronological order.…

Answered: Keel Company purchased a building and…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

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Keel Company purchased a building and land with a fair market value of $650,000 (building, $550,000 and land, $100,000) on January 1, 2018. Keel signed a 20-year, 8% mortgage payable. Keel will make monthly payments of $5,436.86. Round to two decimal places. Explanations are not required for journal entries.

1.	Journalize the mortgage payable issuance on January 1, 2018.
2.	Prepare an amortization schedule for the first two payments.
3.	Journalize the first payment on January 31, 2018.
4.	Journalize the second payment on February 28, 2018.

Requirement 2. Prepare an amortization schedule for the first two payments. (Round all numbers to the nearest cent.)

	Beginning	Principal	Interest	Total	Ending
	Balance	Payment	Expense	Payment	Balance
1/1/2018
1/31/2018
2/28/2018

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