Question:Oriole Electronics issues a $420,500, 4%, 15-year mortgage note
on December 31, 2019. The proceeds from...
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.)
OrioleElectronics
Balance Sheet (Partial)
For the Year Ended December 31, 2020December 31, 2020For the
Month Ended December 31, 2020