Homework Answers
| Period |
Payment Date |
Monthly Payments | Interest Expenses | Reduction in Unpaid Balance | Unpaid Balance |
| Issue Date | 31/10/2017 | 2400000 | |||
| 1 | 30/11/2017 | 24687 | 24000 | 687 | 2399313 |
| 2 | 31/12/2017 | 24687 | 23993 | 691 | 2398622 |
| 3 | 31/01/2018 | 24687 | 23986 |
701 |
2397921 |
| 4 | 28/02/2018 | 24687 | 23979 | 708 | 2397213 |
Part-b
30/11/2017 Mortgage loan a/c Dr 687
Interest a/c Dr 24000
To Bank a/c 24687
( Being payment of first installment is made)
Add Answer to:
Business eu School Problem 2 (15 points) on October 2017. Seldon Company incurs a 30-year $2.400.000...
hool (15 points) On 31 October 2017, Seldon Company incurs a 30-year $2,400,000 mortgage liability in...
hool (15 points) On 31 October 2017, Seldon Company incurs a 30-year $2,400,000 mortgage liability in conjunction with the purchase of a hotel. This mortgage is payable in equal monthly installments of $24,687 which include interest computed at an annual rate of 12 %. The first monthly payment is made on 30o November 2017. This mortgage is fully amortizing over 360 months. Complete the amortization table for the first four payments by entering the correct dollar amounts in the blank...
On December 1, Year 1, Bradley Corporation incurs a 15-year $200,000 mortgage liability in conjunction with...
On December 1, Year 1, Bradley Corporation incurs a 15-year $200,000 mortgage liability in conjunction with the acquisition of an office building. This mortgage is payable in monthly installments of $2,400, which include interest computed at the rate of 12% per year. The first monthly payment is made on December 31, Year 1. How much of the first payment made on December 31, Year 1, represents interest expense? a 2400 b 400 c 2304 d 2000
PROBLEM 10.4B Preparation and Use of an Amortization Table On October 1, 2018. Jenco signed a...
PROBLEM 10.4B Preparation and Use of an Amortization Table On October 1, 2018. Jenco signed a four-year, $100,000 note payable to Vicksburg State Bank in conjunction with the purchase of equipment. The note calls for interest at an annual rate of 12 percent (1 percent per month). The note is fully amortizing over a period of 48 months. The bank sent Jenco an amortization table showing the allocation of monthly payments between interest and principal over the life of the...
1010-4 PROBLEM 10.4B preparation and Use of an Amortization Table pays 16 percent interest instead of...
1010-4 PROBLEM 10.4B preparation and Use of an Amortization Table pays 16 percent interest instead of the 10 percent rate changeu On October 1, 2018, Jenco signed a four-year. $100.000 note payable to Vicksburg State Bank in conjunction with the purchase of equipment. The note calls for interest at an annual rate of 12 per- cent (1 percent per month). The note is fully amortizing over a period of 48 months. The bank sent Jenco an amortization table showine the...
You plan to purchase a $1,000,000 house using a 30-year mortgage obtained from your local bank
3. You plan to purchase a $1,000,000 house using a 30-year mortgage obtained from your local bank. The mortgage rate offered to you is 8.25%, and you will make a down payment of 20%. This is a fully amortizing mortgage loan. a. Calculate your required monthly payments. b. Calculate the interest payment, principal repayment, and ending balance for the first two months. c. Use a spreadsheet to calculate the total amount of interest payment. Is it greater or smaller than the amount of...
2. (25 Points) Suppose a borrower takes out a 30-year adjustable rate mortgage loan for $200,000...
2. (25 Points) Suppose a borrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. The first two years of the loan have a "teaser" rate of 4%, after that, the rate can reset with a 2% annual rate cap. On the reset date, the composite rate is 7%. What would the Year 3 monthly payment be? (15 points) Step I Step2 PV= -179084.11 PV = -200 000 I= 7412=10.58) I=47212= 10.33) N= 336 N=360 130x2)...
Assume that you have a 30 year fully-amortized fixed rate mortgage for your home. Your loan...
Assume that you have a 30 year fully-amortized fixed rate mortgage for your home. Your loan amount is $300,000 with a 3% annual interest rate. After 28 years, you would like to sell the property. What is your loan balance at the end of 28 years? Assume that you have a 30 year fully-amortized fixed rate mortgage for your home. Your loan amount is $300,000 with a 3% annual interest rate and your balloon payment is $50,000. What is your...
Question 5 (6 points) On January 1, 2016, Alpha Company secured a $100,000, 6% annual rate...
Question 5 (6 points) On January 1, 2016, Alpha Company secured a $100,000, 6% annual rate mortgage note. Monthly payments are $1,500, with the first payment being due on January 31 2016, what is the unpaid balance of the note on March 1, 2016? (Round your answer to the nearest whole dollar.) Question 6 (8 points) On August 1, 2017, Alpha Company retired a $10,000 bond at 102. On July 31, 2017 Alpha had accrued the interest payment for $250....
Revesz Inc. signs a 10-year, 4%, $324,000 mortgage payable on November 30, 2017, to obtain financing...
Revesz Inc. signs a 10-year, 4%, $324,000 mortgage payable on November 30, 2017, to obtain financing for a new machinery. The terms provide for payments at the end of each month. Prepare the entries to record the mortgage on November 30, 2017, and the first two payments on December 31, 2017, and January 31, 2018, assuming the payment is (a) a fixed principal payment of $2,700, plus interest, and (b) a blended principal and interest payment of $3,280. (Credit account...
31. (14 points) On December 1, 2019, Driscoll, Inc. signed a 10 year mortgage in the amount...
31. (14 points) On December 1, 2019, Driscoll, Inc. signed a 10 year mortgage in the amount of $275,000 in conjunction with the purchase of an office building. This note is payable in equal monthly installmentsof $2,784 which include interest computed at an annual rate of 4%. The first monthly payment is made on December 31, 2019. Prepare an amortization table for the first two payments. How much of the first payment made on December 31, 2019, is allocated to repayment of...
hool (15 points) On 31 October 2017, Seldon Company incurs a 30-year $2,400,000 mortgage liability in conjunction with the purchase of a hotel. This mortgage is payable in equal monthly installments of $24,687 which include interest computed at an annual rate of 12 %. The first monthly payment is made on 30o November 2017. This mortgage is fully amortizing over 360 months. Complete the amortization table for the first four payments by entering the correct dollar amounts in the blank...
PROBLEM 10.4B Preparation and Use of an Amortization Table On October 1, 2018. Jenco signed a four-year, $100,000 note payable to Vicksburg State Bank in conjunction with the purchase of equipment. The note calls for interest at an annual rate of 12 percent (1 percent per month). The note is fully amortizing over a period of 48 months. The bank sent Jenco an amortization table showing the allocation of monthly payments between interest and principal over the life of the...
1010-4 PROBLEM 10.4B preparation and Use of an Amortization Table pays 16 percent interest instead of the 10 percent rate changeu On October 1, 2018, Jenco signed a four-year. $100.000 note payable to Vicksburg State Bank in conjunction with the purchase of equipment. The note calls for interest at an annual rate of 12 per- cent (1 percent per month). The note is fully amortizing over a period of 48 months. The bank sent Jenco an amortization table showine the...
2. (25 Points) Suppose a borrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. The first two years of the loan have a "teaser" rate of 4%, after that, the rate can reset with a 2% annual rate cap. On the reset date, the composite rate is 7%. What would the Year 3 monthly payment be? (15 points) Step I Step2 PV= -179084.11 PV = -200 000 I= 7412=10.58) I=47212= 10.33) N= 336 N=360 130x2)...
Question 5 (6 points) On January 1, 2016, Alpha Company secured a $100,000, 6% annual rate mortgage note. Monthly payments are $1,500, with the first payment being due on January 31 2016, what is the unpaid balance of the note on March 1, 2016? (Round your answer to the nearest whole dollar.) Question 6 (8 points) On August 1, 2017, Alpha Company retired a $10,000 bond at 102. On July 31, 2017 Alpha had accrued the interest payment for $250....
Revesz Inc. signs a 10-year, 4%, $324,000 mortgage payable on November 30, 2017, to obtain financing for a new machinery. The terms provide for payments at the end of each month. Prepare the entries to record the mortgage on November 30, 2017, and the first two payments on December 31, 2017, and January 31, 2018, assuming the payment is (a) a fixed principal payment of $2,700, plus interest, and (b) a blended principal and interest payment of $3,280. (Credit account...
Most questions answered within 3 hours.
-
Rice Company has a unit selling price of $690, variable costs
per unit of $390, and...
asked 18 minutes ago -
The DeVille Company reported pretax accounting
income on its income statement as follows:
2018
$
425,000...
asked 32 minutes ago -
Argue for or against the "Three Strikes"laws. Provide a rationale
to support your response.
asked 1 hour ago -
Bargaining Models: what is the "Obsolescing Bargain"?
Bargaining Models: what are the factors that would tend...
asked 2 hours ago -
1. A ball is thrown up into the air.
a) Draw motion diagram and the point-like...
asked 2 hours ago -
1) Because money eliminates the "double coincidence of wants"
problem, the development of money as a...
asked 3 hours ago -
Company AAA produces only one product which other manufacturers
purchase as a component for their final...
asked 5 hours ago -
An
item can be appended to an array-based list, provided the lenght is
less than the...
asked 5 hours ago -
Two particles each have a rest mass energy of 30 MeV and are
traveling with a...
asked 7 hours ago -
why
is vectorization a faster alternative to loops?
asked 8 hours ago -
General Matter’s outstanding bond issue has a coupon rate of
11.8%, and it sells at a...
asked 8 hours ago -
Write a one page essay on how important is it to know your basic
accounting knowledge...
asked 8 hours ago