Kessel Company purchased a building and land with a fair market value of $525,000 (building, $275,000 and land, S250,000) on January 1, 2018. Kessel signed a 15-year, 10% mortgage payable. Kessel will make monthly payments of $5,641.68. Round to two decimal places. Explanations are not requiredfor journal entries.Read the requirements.Requirement 1. Journalize the mortgage payable issuance on January 1, 2018. (Record debits first, then credits. Exclude explanations from any journal entries.)DateAccountsDebitCreditO Requirements2018Jan. 1 Building275,000.00Land250,000.001. Journalize the mortgage payable issuance on January 1, 2018.2. Prepare an amortization schedule for the first two payments.3. Journalize the first payment on January 31, 2018.4. Journalize the second payment on February 28, 2018.Mortgage Payable525,000.00Requirement 2. Prepare an amortization schedule for the first two payments. (Round all numbers fBeginningPrincipalInterestTotalEndingPrintDoneBalancePaymentExpensePaymentBalance1/1/2018$ 525,000.001/31/2018 $ 525,000.00 S1,266.68 $4,375.00 $ 5,641.68519,358.322/28/2018519358.321313.325,641.68513.716.64

Mortgage payable: It is a liability which is secured against a property or asset. It is a long-term…

Kessel Company purchased a building and land with a fair market value of $525,000 (building, $275,000 and land, $250,000) on January 1, 2018. Kessel signed a 15-year, 10% mortgage payable. Kessel will make monthly payments of $5,641.68. Round to two decimal places. Explanations are not required for journal entries. Read the reguirements Requirement 1. Journalize the mortgage payable issuance on January 1, 2018. (Record debits first, then credits. Exdude explanations from any journal entries.) - X Date Accounts Debit Credit Requirements 2018 275,000.00 250,000.00 Jan. 1 Bulding Land 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, 201s. Mortgage Payable 525,000.00 Requirement 2. Prepare an amortization schedule for the first two payments. (Round all numbers t Principal Ending Balance $ 525,000.00 Beginning Interest Total Print Done Balance Рayment Expense Payment 1/1/2018 1/31/2018 $ 525,000.00 S 1,266.68 $ 4,375.00 $ 5,641.68 519.358.32 2/28/2018 519358 32 1313.32 5,641.68 513.716.64

Kessel Company purchased a building and land with a fair market value of $525,000 (building, $275,000 and land, $250,000) on January 1, 2018. Kessel signed a 15-year, 10% mortgage payable. Kessel will make monthly payments of $5,641.68. Round to two decimal places. Explanations are not required for journal entries. Read the reguirements Requirement 1. Journalize the mortgage payable issuance on January 1, 2018. (Record debits first, then credits. Exdude explanations from any journal entries.) - X Date Accounts Debit Credit Requirements 2018 275,000.00 250,000.00 Jan. 1 Bulding Land 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, 201s. Mortgage Payable 525,000.00 Requirement 2. Prepare an amortization schedule for the first two payments. (Round all numbers t Principal Ending Balance $ 525,000.00 Beginning Interest Total Print Done Balance Рayment Expense Payment 1/1/2018 1/31/2018 $ 525,000.00 S 1,266.68 $ 4,375.00 $ 5,641.68 519.358.32 2/28/2018 519358 32 1313.32 5,641.68 513.716.64

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 12P: Hamlet Corporation purchases computer equipment at a price of 100,000 on January 1, 2019, paying...

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On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major customer in exchange for used equipment. The equipment had originally cost Park 200,000 and had a book value of 20,000 on the date of the sale. At the 12% imputed interest rate for this type of loan, the present value of the note is 25,500 on January 1, 2019. Park uses the effective interest rate. What is the carrying value of the note receivable on Parks December 31, 2019, balance sheet? a. 28,560 b. 29,000 c. 32,500 d. 36,000
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On January 1, 2019, Boater Company issues a 20,000 non-interest-bearing, 5-year note for equipment. Neither the fair value of the note nor the equipment is determinable. Boaters incremental borrowing rate is 9%. The asset has a useful life of 7 years. Prepare the journal entry for Boater to record the issuance of the note on January 1.
Hamlet Corporation purchases computer equipment at a price of 100,000 on January 1, 2019, paying 40,000 down and agreeing to pay the balance in three 20.000 annual instalments beginning December 31, 2019. It is not possible to value either the equipment or the 60,000 note directly; how-ever, Hamlet's incremental borrowing rate is 12%. Required: 1. Prepare a schedule to compute the interest expense and discount amortization on the note. 2. Prepare all the journal entries for Hamlet to record the issuance of the note, each annual interest expense, and the three annual installment payments.
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