Problem

Recording mortgage payable entries from an amortization schedule [10-15 min]Kaiser Company...

Recording mortgage payable entries from an amortization schedule [10-15 min]

Kaiser Company’s partial amortization schedule follows:

Payment #

Date

Payment

Interest Expense (Principal X 6% X 1/12)

Principal

Mortgage Balance

Loan

1/1/2013

   

500,000.00

1

1/31/2013

3,597.30

2,500.00

1,097.30

498,902.70

2

2/28/2013

3,597.30

2,494.51

1,102.79

497,799.91

3

3/31/2013

3,597.30

2,489.00

1,108.30

496,691.61

4

4/30/2013

3,597.30

2,483.46

1,113.84

495,577.77

5

5/31/2013

3,597.30

2,477.89

1,119.41

494,458.36

6

6/30/2013

3,597.30

2,472.29

1,125.01

493,333.35

7

7/31/2013

3,597.30

2,466.67

1,130.63

492,202.72

8

8/31/2013

3,597.30

2,461.01

1,136.29

491,066.43

9

9/30/2013

3,597.30

2,455.33

1,141.97

489,924.46

10

10/31/2013

3,597.30

2,449.62

1,147.68

488,776.78

11

11/30/2013

3,597.30

2,443.88

1,153.42

487,623.36

12

12/31/2013

3,597.30

2,438.12

1,159.18

486,464.18

 

2013 totals

43,167.60

29,631.78

13,535.82

 

Requirements

1. Journalize the note issuance and the reclassification of the current portion on January 1, 2013 (explanations are not required).


2. Journalize the first payment on January 31, 2013 (do not round).


3. Journalize the second payment on February 28, 2013 (do not round).

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