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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