Question

Using this information how do you do the amorization schedule and the other journal entey and last two question?

The following information applies to the questions displayed below! On January 1, 2018, Gundy Enterprises purchases an office for $239,000, paying $49.000 down and borrowing the remaining are due at the end of each month, with the first payment due on January 31, 2018

Answer 1

1
The first three rows of amortizaton schedule is shown below
Date	Cash paid (a)	Interest expense (b)	Decrease in carrying value (a-b)	Carrying value
1/1/2018				$190,000.00
31/01/2018	$2,406.84	$1,425.00	$981.84	$189,018.16	190000-981.84
28/02/2018	$2,406.84	$1,417.64	$989.20	$188,028.96	189018.16-989.20
	Interest
31/01/2018	190000*(9%/12)
28/02/2018
2
Journal entry to record first mortgage payment
Date	General Journal	Debit	Credit
31-Jan-18	Interest expense	$1,425
	Mortgage loan payable	$982
	Cash		$2,407
The journal entry amount are shown as rounded off, they can be shown in decimals if required
3b.
	Interest expense	Reducing the carrying value
First payment	$1,425.00	$981.84
4
Actual payment on loan	$190,000
Interest payment	$98,821	288821-190000
Total loan payment	$288,821