Question

Oriole Electronics issues a $420,500, 4%, 15-year mortgage note on December 31, 2019. The proceeds from...

Oriole Electronics issues a $420,500, 4%, 15-year mortgage note on December 31, 2019. The proceeds from the note are to be used in financing a new research laboratory. The terms of the note provide for annual installment payments, exclusive of real estate taxes and insurance, of $51,844. Payments are due on December 31.

Prepare an installment payments schedule for the first 4 years. (Round answers to 0 decimal places, e.g. 15,250.)

Annual Interest Period

Cash Payment

Interest Expense

Reduction of Principal

Principal Balance

Issue Date

$
1 $ $ $
2
3
4
Prepare the entries for (1) the loan and (2) the first installment payment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 15,250. Record journal entries in the order presented in the problem.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31, 2019Dec. 31, 2020

Dec. 31, 2019Dec. 31, 2020

Show how the total mortgage liability should be reported on the balance sheet at December 31, 2020. (Enter account name only and do not provide descriptive information. Round answers to 0 decimal places, e.g. 15,250.)
Oriole Electronics
Balance Sheet (Partial)

For the Year Ended December 31, 2020December 31, 2020For the Month Ended December 31, 2020

$
$

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Sunland Electronics issues a $448,500, 7%, 15-year mortgage note on December 31, 2019. The proceeds from...
Sunland Electronics issues a $448,500, 7%, 15-year mortgage note on December 31, 2019. The proceeds from the note are to be used in financing a new research laboratory. The terms of the note provide for annual installment payments, exclusive of real estate taxes and insurance, of $63,856. Payments are due on December 31. (a) Prepare an installment payments schedule for the first 4 years
Problem 10-07A a-c (Part Level Submission) Larkspur, Inc. issues a $441,000, 10%, 10-year mortgage note on...
Problem 10-07A a-c (Part Level Submission) Larkspur, Inc. issues a $441,000, 10%, 10-year mortgage note on December 31, 2019. The proceeds from the note are to be used in financing a new research laboratory. The terms of the note provide for annual installment payments, exclusive of real estate taxes and insurance, of $71,771. Payments are due on December 31. (a) Prepare an installment payments schedule for the first 4 years. (Round answers to 0 decimal places, e.g. 15,250.) Annual Interest...
Adams Corporation issues a $4,500,000, 6%, 20-year mortgage note payable on December 31, 2019, to obtain...
Adams Corporation issues a $4,500,000, 6%, 20-year mortgage note payable on December 31, 2019, to obtain needed financing for the construction of a building addition. The terms provide for annual installment payments of $309,409 on December 31. Instructions (a)    Prepare the journal entries to record the mortgage loan on December 31, 2019, and the first installment payment on December 31, 2020. (b)    Prepare the journal entries to record second installment payment on December 31, 2021. (c) Will the amount of...
On December 31, 2020, Oriole Co. performed environmental consulting services for Hayduke Co. Hayduke was short...
On December 31, 2020, Oriole Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Oriole Co. agreed to accept a $346,500 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 11%. Oriole is much more creditworthy and has various lines of credit at 6%. Partially correct answer iconYour answer is partially correct. Prepare the journal entry to record the...
On December 31, 2020, Oriole Company acquired a computer from Plato Corporation by issuing a $570,000...
On December 31, 2020, Oriole Company acquired a computer from Plato Corporation by issuing a $570,000 zero-interest-bearing note, payable in full on December 31, 2024. Oriole Company’s credit rating permits it to borrow funds from its several lines of credit at 10%. The computer is expected to have a 5-year life and a $67,000 salvage value. A )Prepare the journal entry for the purchase on December 31, 2020. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and...
Clemens Corporation issues a 200,000, 10%, 10year mortgage note on December 31, 2012. The mortgage provides...
Clemens Corporation issues a 200,000, 10%, 10year mortgage note on December 31, 2012. The mortgage provides for semi-annual installment payments of $ 24,022. Payments are due on June 30th and on December 31st. a) Prepare an installment payment schedule for the first two years. b) (1) Prepare the entries for taking out the mortgage loan and (2) the first two installment payments; c) Show how the mortgage liability should be reported on the Balance Sheet at 12/31/2013;
Laverne purchased a new piece of equipment to be used in its new facility. The $...
Laverne purchased a new piece of equipment to be used in its new facility. The $ 380,000 piece of equipment was purchased with a $ 57,000 down payment and with cash received through the issuance of a $ 323,000,  8%,  5-year mortgage payable issued on January 1, 2017. The terms provide for annual installment payments of $80,897 on December 31. Prepare an installment payments schedule for the first five payments of the notes payable. (Round answers to 0 decimal places, e.g. 125.)...
Ayayai Co. receives $2,980,000 when it issues a $2,980,000, 7%, mortgage note payable to finance the...
Ayayai Co. receives $2,980,000 when it issues a $2,980,000, 7%, mortgage note payable to finance the construction of a building at December 31, 2019. The terms provide for annual installment payments of $294,000 on December 31. Prepare the journal entries to record the mortgage loan and the first two installment payments. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Issuance of Note Dec. 31, 2019 enter...
Oriole Company issued $640,000, 10%, 10-year bonds on December 31, 2019, for $570,000. Interest is payable...
Oriole Company issued $640,000, 10%, 10-year bonds on December 31, 2019, for $570,000. Interest is payable annually on December 31. Oriole Company uses the straight-line method to amortize bond premium or discount. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2019 Prepare the journal entry to record the payment of interest and the discount...
Sunland Inc. issues a $342,000, 10-year, 6% mortgage note payable on November 30, 2021, to obtain...
Sunland Inc. issues a $342,000, 10-year, 6% mortgage note payable on November 30, 2021, to obtain financing for a new building. The terms provide for monthly instalment payments. Prepare the journal entries to record the mortgage loan on November 30, 2021, and the first two payments on December 31, 2021, and January 31, 2022, assuming the payment is a fixed principal payment of $2,850. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT