Accounting Help - Accounting Question?

Answers:4   |   LastUpdateAt:2018-10-05 09:06:56  

Question
niel
Asked at 2012-07-15 17:44:02
P10 -5A
Fordyce electronics issues $ 400,000 , 8% of 10 year mortgage note on December 31, 2010 . The proceeds of the note will be used to finance a new research laboratory. The terms of the note provide semiannual payments , excluding property taxes and insurance, $ 29,433 . Payments are due on June 30 and December 31 .




Complete schedule of installment payments during the first 2 years. ( Round answers to 0 decimal places, eg 125. Use rounded amounts for future calculations . )
Semiannual
Interest Period
Cash payment
Interest expenses
reduction
of
Home Balance

Date of issue $
$ 1
2
3
4







Prepare the entries for (1) the loan and (2) the first two installments. ( For multiple debit / credit entries quantities listed in descending eg 10 , 5, 3, 2. Response and back to 0 decimal places, eg 125. )
Date Account / Description Debit Credit
2010
December 31
2011

June 30


December 31








Show how the total liability of the mortgage must be reported on the balance sheet at December 31, 2011 . ( Response and back to 0 decimal places, eg , 125. )
Current liabilities
12/31/11
Long-term debt
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