Question

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;

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer-a):

Answer-b):

Answer-c):

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
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...
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...
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
On December 31, 2021, Tian Inc. issued a $500,000, 15-year, 8% mortgage note payable. The terms...
On December 31, 2021, Tian Inc. issued a $500,000, 15-year, 8% mortgage note payable. The terms provide for semi-annual blended payments of $28,915 on June 30 and December 31. (a) Prepare an instalment payment schedule for the first two years of the note (through to December 31, 2023). How would you do this using the calculator for the schedule?
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...
Installment Term Loan On December 31, 2017, Eppel, Inc. borrowed $900,000 on an eight per-cent, 15-year...
Installment Term Loan On December 31, 2017, Eppel, Inc. borrowed $900,000 on an eight per-cent, 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.
Crane Company receives $384,000 when it issues a $384,000, 10%, mortgage note payable to finance the...
Crane Company receives $384,000 when it issues a $384,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2022. The terms provide for annual installment payments of $64,000 on December 31. (a1) a. Prepare an amortization schedule of a mortgage note for two years. b. Prepare the journal entry to record the mortgage loan c. Prepare the journal entries to record the first two installment payments Annual Interest Period Cash Payment Interest Expense Reduction of...
A company with a fiscal year ending on December 31 borrowed money with an installment loan...
A company with a fiscal year ending on December 31 borrowed money with an installment loan of $500,000 on January 1, 2017. The loan agreement requires the company to make five equal annual payments that will fully amortize the loan in exactly five years. The first payment on the loan was made December 31, 2017 and the annual interest rate associated with the loan was 8 percent. After the December 31, 2019 payment is made, the amount of the liability...
On December 31, 2014, Montmartre S.A., borrowed $500,000 on an 8%, 10-year mortgage note payable. The...
On December 31, 2014, Montmartre S.A., borrowed $500,000 on an 8%, 10-year mortgage note payable. The note is to be repaid in equal quarterly instalments of $18,278 (beginning March 31, 2015). a) Prepare journal entries to reflect (1) the issuance of the mortgage note payable, (2) the payment of the first instalment on March 31, 2015, and (3) the payment of the second instalment on June 30, 2015. Round to the nearest dollar.
Easton Company is projecting a cash balance of $41,000 in its December 31, 2012, balance sheet....
Easton Company is projecting a cash balance of $41,000 in its December 31, 2012, balance sheet. Easton’s schedule of expected collections from customers for the first quarter of 2013 shows total collections of $150,000. The schedule of expected payments for direct materials for the first quarter of 2013 shows total payments of $30,000. Other information gathered for the first quarter of 2013 is: sale of equipment $4,000; direct labor $60,000, manufacturing overhead $35,000, selling and administrative expenses $45,000; and purchase...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT