Kessel Company purchased a building and land with a fair market value of $475,000 (building, $300,000 and land, $175,000) on January 1, 2018. Kessel signed a 25- year, 8% mortgage payable. Kessel will make monthly payments of 3,666.13. Round to two decimal places. Explanations are not for journal entries. Requirements 1. Journalize the mortgae 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
Kessel Company purchased a building and land with a fair market value of $475,000 (building, $300,000 and land, $175,000) on January 1, 2018. Kessel signed a 25- year, 8% mortgage payable. Kessel will make monthly payments of 3,666.13. Round to two decimal places. Explanations are not for journal entries. Requirements 1. Journalize the mortgae 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
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 15DQ
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Kessel Company purchased a building and land with a fair market value of $475,000 (building, $300,000 and land, $175,000) on January 1, 2018. Kessel signed a 25- year, 8% mortgage payable. Kessel will make monthly payments of 3,666.13. Round to two decimal places. Explanations are not for
Requirements
1. Journalize the mortgae 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
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