Cole Research issues a $250,000, 8%, 20-year mortgage note to obtain needed financing for a new lab. The terms call for semiannual payments of $12,631 each. Prepare the entries to record the mortgage loan and the first installment payment.

1.33K views
0
0 Comments

Cole Research issues a $250,000, 8%, 20-year mortgage note to obtain needed financing for a new lab. The terms call for semiannual payments of $12,631 each. Prepare the entries to record the mortgage loan and the first installment payment.

1 Answer

0
Darshita6.14K 0 Comments

Cash 250,000

Mortgage Payable 250,000

(To record mortgage loan)

 

Interest Expense 10,000

Mortgage Payable  2361

Cash   12361

(To record semiannual payment on mortgage)

Interest expense 5 $250,000 3 8% 3 6/12

Contact us today

Ask for our academic services

Copyright SmartStudyHelp 2016. All Rights Reserved

Mail Us : [email protected]