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Part (b) only
On January 1, 2020 a company takes out a 5-year mortgage on a new property in the amount of $503,000 at an annual interest rate of 6%. There will be a fixed monthly payment payable at the end of each month that will include both interest and principal. The fixed monthly payment payable is $9,724.40. *(a) Your answer is correct. Calculate the amount of interest and principal for the first month's payment. (Round answers to 2 decimal...
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On January 1, 2020 a company takes out a 5-year mortgage on a new property in the amount of $511,000 at an annual interest rate of 6%. There will be a fixed monthly payment payable at the end of each month that will include both interest and principal. The fixed monthly payment payable is $9,879.06. (a) Calculate the amount of interest and principal for the first month's payment. (Round answers to 2 decimal places, e.g. 15.25.) Interests Principals
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On January 1, 2020 a company takes out a 5-year mortgage on a new property in the amount of $503,000 at an annual interest rate of 6%. There will be a fixed monthly payment payable at the end of each month that will include both interest and principal. The fixed monthly payment payable is $9,724.40. (a) Calculate the amount of interest and principal for the first month's payment. (Round answers to 2 decimal places, e.g. 15.25.) Interest $ Principal $
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On January 1, 2020, Buffalo Company sold 11% bonds having a
maturity value of $600,000 for $622,744, which provides the
bondholders with a 10% yield. The bonds are dated January 1, 2020,
and mature January 1, 2025, with interest payable December 31 of
each year. Buffalo Company allocates interest and unamortized
discount or premium on the effective-interest basis.
Prepare the journal entry at the date of the bond issuance.
(Round answer to 0 decimal places, e.g. 38,548. If no
entry...
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Exercise 15-6 Whitmore Company issued $500,000 of 5-year, 5% bonds at 95 on January 1, 2017. The bonds pay Interest annually Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically Indented when amount is entered. Do not Indent manually.) Account Titles and Explanation Debit 475000 Discount on Bonds Payable 25000 Bonds Payable 500000 SHOW LIST OF ACCOUNTS Compute the total cost of borrowing for these bonds. Total cost of borrowing 150000 SHOW LIST...
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Exercise 10-5 La Porte Company obtained a 10-year, 5%, $164,000 mortgage loan to finance the purchase of a warehouse at March 31, 2017. The terms provide for semi-annual instalment payments on September 30 and March 31 Record the obtaining of the mortgage payable on March 31, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Date Debit Credit Mar. 31 SHOW LIST OF ACCOUNTS LINK TO TЕXT Record the...
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Exercise 10-5 Ste. Anne Corp. obtained a 10-year, 5%, $136,000 mortgage loan to finance the purchase of a building at December 31, 2017. The terms provide for semi-annual instalment payments on June 30 and December 31. Your answer is correct. Record the obtaining of the mortgage payable on December 31, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Cash 136000 2 T Mortgage...
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On January 1, 2020, Sandhill Company issued $310,500, 9%, 5-year
bonds at face value. Interest is payable annually on January 1.
Prepare the journal entry to record the issuance of the bonds.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Jan. 1, 2020
Prepare the journal entry to record the accrual of interest on
December 31, 2020. (Credit account titles are
automatically indented when amount is entered....
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Exercise 10-5 La Porte Company obtained a 10-year, 5 % , $187 ,000 mortgage loan to finance the purchase of a warehouse at March 31, 2017. The terms provide for semi-annual instalment payments on September 30 and March 31. Record the obtaining of the mortgage payable on March 31, 2017. (Credit account titles are automatically indented when the amount entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Mar. 31 SHOW IIST OF ACCOUNTS LINK TO TEX...
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Application Problem 10-13 b A company takes out a four-year, $880,000 mortgage on May 1. The interest rate on the loan is 4% per year, and blended payments of $19,870 (including both interest and principal) are to be made at the end of each month. The following is an extract from the loan amortization table the bank provided the company: Payment 1 Payment 2 Payment 3 Payment 4 Beginning Loan Balance $880,000 863,063 846,070 829,020 Payment $19,870 19,870 19,870 19,870...
Part (b) only
On January 1, 2020 a company takes out a 5-year mortgage on a new property in the amount of $503,000 at an annual interest rate of 6%. There will be a fixed monthly payment payable at the end of each month that will include both interest and principal. The fixed monthly payment payable is $9,724.40. *(a) Your answer is correct. Calculate the amount of interest and principal for the first month's payment. (Round answers to 2 decimal...
On January 1, 2020 a company takes out a 5-year mortgage on a new property in the amount of $511,000 at an annual interest rate of 6%. There will be a fixed monthly payment payable at the end of each month that will include both interest and principal. The fixed monthly payment payable is $9,879.06. (a) Calculate the amount of interest and principal for the first month's payment. (Round answers to 2 decimal places, e.g. 15.25.) Interests Principals
On January 1, 2020 a company takes out a 5-year mortgage on a new property in the amount of $503,000 at an annual interest rate of 6%. There will be a fixed monthly payment payable at the end of each month that will include both interest and principal. The fixed monthly payment payable is $9,724.40. (a) Calculate the amount of interest and principal for the first month's payment. (Round answers to 2 decimal places, e.g. 15.25.) Interest $ Principal $
On January 1, 2020, Buffalo Company sold 11% bonds having a
maturity value of $600,000 for $622,744, which provides the
bondholders with a 10% yield. The bonds are dated January 1, 2020,
and mature January 1, 2025, with interest payable December 31 of
each year. Buffalo Company allocates interest and unamortized
discount or premium on the effective-interest basis.
Prepare the journal entry at the date of the bond issuance.
(Round answer to 0 decimal places, e.g. 38,548. If no
entry...
Exercise 15-6 Whitmore Company issued $500,000 of 5-year, 5% bonds at 95 on January 1, 2017. The bonds pay Interest annually Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically Indented when amount is entered. Do not Indent manually.) Account Titles and Explanation Debit 475000 Discount on Bonds Payable 25000 Bonds Payable 500000 SHOW LIST OF ACCOUNTS Compute the total cost of borrowing for these bonds. Total cost of borrowing 150000 SHOW LIST...
Exercise 10-5 La Porte Company obtained a 10-year, 5%, $164,000 mortgage loan to finance the purchase of a warehouse at March 31, 2017. The terms provide for semi-annual instalment payments on September 30 and March 31 Record the obtaining of the mortgage payable on March 31, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Date Debit Credit Mar. 31 SHOW LIST OF ACCOUNTS LINK TO TЕXT Record the...
Exercise 10-5 Ste. Anne Corp. obtained a 10-year, 5%, $136,000 mortgage loan to finance the purchase of a building at December 31, 2017. The terms provide for semi-annual instalment payments on June 30 and December 31. Your answer is correct. Record the obtaining of the mortgage payable on December 31, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Cash 136000 2 T Mortgage...
On January 1, 2020, Sandhill Company issued $310,500, 9%, 5-year
bonds at face value. Interest is payable annually on January 1.
Prepare the journal entry to record the issuance of the bonds.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Jan. 1, 2020
Prepare the journal entry to record the accrual of interest on
December 31, 2020. (Credit account titles are
automatically indented when amount is entered....
Exercise 10-5 La Porte Company obtained a 10-year, 5 % , $187 ,000 mortgage loan to finance the purchase of a warehouse at March 31, 2017. The terms provide for semi-annual instalment payments on September 30 and March 31. Record the obtaining of the mortgage payable on March 31, 2017. (Credit account titles are automatically indented when the amount entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Mar. 31 SHOW IIST OF ACCOUNTS LINK TO TEX...
Application Problem 10-13 b A company takes out a four-year, $880,000 mortgage on May 1. The interest rate on the loan is 4% per year, and blended payments of $19,870 (including both interest and principal) are to be made at the end of each month. The following is an extract from the loan amortization table the bank provided the company: Payment 1 Payment 2 Payment 3 Payment 4 Beginning Loan Balance $880,000 863,063 846,070 829,020 Payment $19,870 19,870 19,870 19,870...