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ual installments of $65,051 (payable on June 30 and December 31). Each mortgage payment includes principal and interest. Interest is computed using the effective interest method. Indicate the financial statement effects using the template for (a) issuance of the mortgage note payable, (b) payment of the first installment on June 30, and (c) payment of the second installment on December 31. I have some attempts in the chart attached b

ual installments of $65,051 (payable on June 30 and December 31). Each mortgage payment includes principal and interest. Interest is computed using the effective interest method. Indicate the financial statement effects using the template for (a) issuance of the mortgage note payable, (b) payment of the first installment on June 30, and (c) payment of the second installment on December 31. I have some attempts in the chart attached b

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, Patterson Inc. borrowed $1,000,000 on a 10%, 15‑year mortgage note payable. The note is to be repaid in equal semiannual installments of $65,051 (payable on June 30 and December 31). Each mortgage payment includes principal and interest. Interest is computed using the effective interest method. Indicate the financial statement effects using the template for (a) issuance of the mortgage note payable, (b) payment of the first installment on June 30, and (c) payment of the second installment on December 31.

I have some attempts in the chart attached by I do not know if its correct.

Balance Sheet Income Statement Transaction Cash Asset Noncash Assets Liabilities Contrib. Capital Earned Capital Revenues Expenses = Net Income a. 1000000 1000000 Cash N/A Long term debt N/A N/A N/A N/A b. 934949 0 = 966666.7 -65051 -65051 Cash Long term debt N/A N/A Interest expense C. 0 = 0 - -65051 = -65051 N/A N/A Interest expense Please answer all parts of the question.
Transcribed Image Text:Balance Sheet Income Statement Transaction Cash Asset Noncash Assets Liabilities Contrib. Capital Earned Capital Revenues Expenses = Net Income a. 1000000 1000000 Cash N/A Long term debt N/A N/A N/A N/A b. 934949 0 = 966666.7 -65051 -65051 Cash Long term debt N/A N/A Interest expense C. 0 = 0 - -65051 = -65051 N/A N/A Interest expense Please answer all parts of the question.
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