Part (A) Yusuf Inc. issues an $800,000, 10%, 10-year mortgage note on December 31, 2018, to obtain financing for a new building. The terms provide for semiannual installment payments of $64,194. Instructions 1- Prepare the entry to record the mortgage loan on December 31, 2018, and the first installment payment. 2- Explain the concept behind mortagage notes? Part (B) What would the entry to record the issuance of two thousand bonds with a face value of $1,000 each and are sold at 103.
Part (A) Yusuf Inc. issues an $800,000, 10%, 10-year mortgage note on December 31, 2018, to obtain financing for a new building. The terms provide for semiannual installment payments of $64,194. Instructions 1- Prepare the entry to record the mortgage loan on December 31, 2018, and the first installment payment. 2- Explain the concept behind mortagage notes? Part (B) What would the entry to record the issuance of two thousand bonds with a face value of $1,000 each and are sold at 103.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
| Part (A) Yusuf Inc. issues an $800,000, 10%, 10-year mortgage note on December 31, 2018, to obtain financing for a new building. The terms provide for semiannual installment payments of $64,194. | |||||||||||||||||
| Instructions | |||||||||||||||||
| 1- Prepare the entry to record the mortgage loan on December 31, 2018, and the first installment payment. | |||||||||||||||||
| 2- Explain the concept behind mortagage notes? |
|
| Part (B) What would the entry to record the issuance of two thousand bonds with a face value of $1,000 each and are sold at 103. | ||||||||||||
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