On March 1, 2020 Inland corporation purchased a building by signing a $185,000 long term mortgage with monthly payments of $2,500. The mortgage carries an interest rate of 12 percent. 1. a. For the first three months, prepare a monthly payment schedule showing the monthly payment, the interest for the month, the reduction in debt and the unpaid balance. (round to the nearest dollar). b. Prepare journal entries to record the purchase of the building (include dates). C. Prepare the journal entry to record the first two monthly payments (include dates).
On March 1, 2020 Inland corporation purchased a building by signing a $185,000 long term mortgage with monthly payments of $2,500. The mortgage carries an interest rate of 12 percent. 1. a. For the first three months, prepare a monthly payment schedule showing the monthly payment, the interest for the month, the reduction in debt and the unpaid balance. (round to the nearest dollar). b. Prepare journal entries to record the purchase of the building (include dates). C. Prepare the journal entry to record the first two monthly payments (include dates).
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
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 1RE
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