Question

V/S12-2 (open response) Question Help Edward Company purchased a building with a market value of $340,000 and land with a market value of $60,000 on January 1, 2018. Edward Company paid $50,000 cash and signed a 20-year, 6% mortgage payable for the balance. Requirements 1. Joumalize the January 1, 2018, purchase. Journalize the first monthly payment of $2,508 on January 31, 2018. (Round 2. the nearest dollar.) Building 340,000 Cash 50,000 Mortgage Payable 350,000 Purchased building and land with a mortgage and cash payment. Requirement 2. Journalize the first monthly payment of $2,508 on January 31, 2018. (Round to the nearest dollar.) (Record debits first, then credits. Select explanations on the last line of the journal entry. Check your spelling carefully and do not abbreviate.) Date Accounts and Explanations Debit Credit 2018 Mortgage Payable Jan. 31 INTEREST EXPENSE 1,750 CASH Paid principal and interest payment Choose from any list or enter any number in the input fields and then click Check Answer ? All parts showing Clear All Check Answer

Answer 1

Journal entries

Date	account and explanation	debit	Credit
Jan 1	Building	340000
	Land	60000
	Cash		50000
	Mortgage notes payable		350000
	(To record purchase)
Jan 31	Mortgage notes payable	758
	Interest expense (350000*6%*1/12)	1750
	Cash		2508
	(To record installment paid)