On December 31, 2017, Eppel, Inc. borrowed $900,000 on an eight percent, 15‑year mortgage note payable. The note is to be repaid in equal semiannual installments of $52,047 (payable on June 30 and December 31). Prepare journal entries to reflect (a) the issuance of the mortgage note payable, (b) the payment of the first installment on June 30, 2018, and (c) the payment of the second installment on December 31, 2018. Round amounts to the nearest dollar. General Journal Date Description Debit Credit a.) Dec.31 Borrowed a mortgage note payable. b.) Jun.30 Interest Expense To record semiannual payment. c.) Dec.31 Mortgage Note Payable To record semiannual payment.
On December 31, 2017, Eppel, Inc. borrowed $900,000 on an eight percent, 15‑year mortgage note payable. The note is to be repaid in equal semiannual installments of $52,047 (payable on June 30 and December 31). Prepare journal entries to reflect (a) the issuance of the mortgage note payable, (b) the payment of the first installment on June 30, 2018, and (c) the payment of the second installment on December 31, 2018. Round amounts to the nearest dollar. General Journal Date Description Debit Credit a.) Dec.31 Borrowed a mortgage note payable. b.) Jun.30 Interest Expense To record semiannual payment. c.) Dec.31 Mortgage Note Payable To record semiannual payment.
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 11E
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On December 31, 2017, Eppel, Inc. borrowed $900,000 on an eight percent, 15‑year mortgage note payable. The note is to be repaid in equal semiannual installments of $52,047 (payable on June 30 and December 31). Prepare
| General Journal | |||
|---|---|---|---|
| Date | Description | Debit | Credit |
| a.) | |||
| Dec.31 | |||
| Borrowed a mortgage note payable. | |||
| b.) | |||
| Jun.30 | Interest Expense | ||
| To record semiannual payment. | |||
| c.) | |||
| Dec.31 | |||
| Mortgage Note Payable | |||
| To record semiannual payment. |
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