Question

WileyPLUS Problem 10-7 Stacy Button has just approached a venture capitalist for financing for her new business venture, Skidium Corporation, the development of a local ski hill. On July 1, 2018, Stacy borrowed $90,000 by signing a mortgage payable at an annual interest rate of 6%. The mortgage is repayable over 5 years in annual instalments, due each June 30. The first payment is due June 30, 2019 and the ski hill company's year-end will also be June 30. nterest rate of 6%. The mortgage Prepare an amortization schedule for the 5 year term of the mortgage, assuming the payment is a blended principal and interest payment of $21,366. (Round answers to the nearest whole dollar, e.g. 5,275.) Annual Interest Period Cash Payment Interest Expense Reduction of Principal Reduintipal of Principal Balance July 1, 2018 June 30, 2019 $ June 30, 2020 June 30, 2021 2022 June 30, 2023 Total

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

Answer 2 Part 1) Annual Interest Period Cash Payment Interest Expense Reduction of Principle Principal Balance 4 July 1. 2018 5 June 30.2019 6 June 30.2020 7 June 30.2021 8 June 30.2022 9 June 30.2023 10 Total 21366 21366 21366 21366 21366 1068301 5400 4442 3427 2350 1211 16830 15966 16924 17939 19016 20155 90000 90000 74034 57110 39171 20155 0 12 Part 2) 13 Date 14 July 1. 2018 bit Credit 900001 90000 16 June 30.2019 Account Titles and Explanation Cash Mortgage Payable Interest expense Mortgage Payable Cash Interest expense Mortgage Payable Cash 54001 15966 21366 19 June 30.2020 4442 16924 21366 23 Part 3) SKIDIUM CORPORATION Statement of Financial Position (Partial) 26 June 30, 2020 27 Current Liabilities 28 Current Portion of Mortgage Payable T 29 Non Current Liabilities 30 Mortgage Payable 21 17939 39171