Question

Question 15 Stuckey Company borrowed $800,000 on December 31, 2019, by issuing an $800,000, 8% mortgage note payable. The terms call for annual installment payments of $119,224 on December 31. decimal places, e.g. 15,250. Credit account Prepare the journal entries to record the mortgage loan and the first two installment payments. (Round answers to tities are automatically indented when amount is entered. Do not indent manually.) Date Account Tities and Explanation Debit Credit Dec 31, 2019 Dec. 31, 2020 Dec 31, 2021

Answer 1

Debit Credit CALCULATIONS $ 8,00,000 $ 8,00,000 800000 x 8% Date General Journal 2019 Dec-31 Cash Mortgage Payable (To record Morgtgage payable) 2020 Dec-31 Interest Expenses Mortgage Payable Cash (to Record installment paid) 2021 Dec-31 Interest Expenses Mortgage Payable Cash (to Record installment paid) $ $ 64,000 55,224 $ 1,19,224 $ $ 59,582 59,642 744,776 x 8% $ 1,19,224 2021 Dec-31 Current Liability = [119,224 - ( 685,134 x 8%) = $64,413 Long Term Liability = (800,000 - 55,224 - 59,642-64,4133) = $620,721