Question

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 Principal		Principal Balance
Issue date		$enter a dollar amount rounded to 0 decimal places enter a dollar amount rounded to 0 decimal places		$enter a dollar amount rounded to 0 decimal places enter a dollar amount rounded to 0 decimal places		$enter a dollar amount rounded to 0 decimal places enter a dollar amount rounded to 0 decimal places		$enter a dollar amount rounded to 0 decimal places enter a dollar amount rounded to 0 decimal places
12/31/23		enter a dollar amount rounded to 0 decimal placesenter a dollar amount rounded to 0 decimal places		enter a dollar amount rounded to 0 decimal placesenter a dollar amount rounded to 0 decimal places		enter a dollar amount rounded to 0 decimal placesenter a dollar amount rounded to 0 decimal places		enter a dollar amount rounded to 0 decimal placesenter a dollar amount rounded to 0 decimal places
12/31/24		enter a dollar amount rounded to 0 decimal placesenter a dollar amount rounded to 0 decimal places		enter a dollar amount rounded to 0 decimal placesenter a dollar amount rounded to 0 decimal places		enter a dollar amount rounded to 0 decimal placesenter a dollar amount rounded to 0 decimal places		enter a dollar amount rounded to 0 decimal placesenter a dollar amount rounded to 0 decimal places

Answer 1

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