Jernigan Co. receives $240,000 when it issues a $240,000, 6%, mortgage note payable to finance the construction of a building at December 31, 2020. The terms provide for annual installment payments of $33,264 on December 31. Instruction: Prepare the journal entries to record the the first and second installment payments.

Q: John issued a $1,300,000, 10%, 10-year mortgage note on December 31, 2020, to obtain financing for a…

A: a. To record the mortgage loan on December 31, 2020:Date: December 31, 2020Debit: Building (or…

Q: On January 1, 2020, MP's customer issued a 3 year 8% note, PHP 3,000,000 for services billed to be…

A: Carrying amount is also known as carrying value or book value. The carrying amount of a note issued…

Q: 1. Costco Wholesale Corporation borrows $640,000 on September 1, 2021. Costco signs a nine- month,…

A: Formula: Interest amount = Notes payable amount x Time period x Interest rate.

Q: DAM Corporation, a lending institution, provided a loan to LAP company for $5,000,000 on Januray…

A: Loan origination fees include but are not limited to fees charged to the borrow as prepaid…

Q: On January 1, 2024, Tropical Cruise Lines borrows $49,000 by agreeing to a 6%, five-year note with…

A: Note payable: Note payable also called promissory note. It is a legal instrument in which one party…

Q: PT ABC issues a $800,000, 7%, 15-yearmortgage note on December 31, 2019. Theterms provide for annual…

A: Payment of principal = Annual installment payments - Interest expense

Q: unland Resort Corp. issued a 20-year, 6%, $274,000 mortgage note payable to finance the construction…

A: The practice of capturing commercial transactions for the first time in the books of accounts is…

Q: Mermaid Bank granted a loan to a borrower on January 1, 2020. The interest on the loan is 12%…

A: CARRYING VALUE It refers to the worth of an asset or a debt at the time it was purchased. Carrying…

Q: On January 1, 2021, Stoops Entertainment purchases a building for $550,000, paying $10,000 down and…

A: Lets understand the basics. For recording financial event or transaction occur during a particular…

Q: Lisa Ehrlich Inc. issues a $1,300,000, 8%, 10-year mortgage note on December 31, 2022, to obtain…

A: The question asked to prepare the journal entries in the books of Lisa Ehrlich.   Journal entries:…

Q: ACME Inc. issued a 10 year, 5%, $340,000 note payable to finance the construction of a new building…

A: The process of recording business transactions in the books of accounts for the first time is…

Q: Carla Vista Resort Corp. issued a 20-year, 8%, $300,000 mortgage note payable to finance the…

A: NOTES PAYABLE   Notes Payable is a Long term Liabilities & Shown under the Head of Non Current…

Q: On October 12, 2020, Golf Co. received from one of its customers, Ping Co., a $30,500, 8% 90 day…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: On January 1, 2021, Tropical Paradise borrows $37,000 by agreeing to a 6%, six-year note with the…

A: INTRODUCTION: An installment note is a legal obligation or responsibility that compels the borrower…

Q: How much shall be reported as interest income for 2022? ALVR Digital Bank granted a loan to a client…

A: Interest Income  Interest income refers to the amount of money that is paid by the borrower to the…

Q: Cullumber Electronics issues a $355,500, 3%, 10-year mortgage note on December 31, 2021. The…

A: Interest = Loan amount x rate of interest x no. of months in calendar year /12 months Loan Payment =…

Q: Hen it issues a $282,000, 10% mortgage note payable to finance the construction of a building at…

A: In the first transaction on December 31, 2022, we're recording the initiation of the mortgage loan.…

Q: Wildhorse Co. issued a five-year interest-bearing note payable for $324000 on January 1, 2019. Each…

A: Balance sheet is the financial statement which involves the total debt, liabilities, assets and…

Q: The following amortization schedule indicates the interest and principal that Chip's Cookie…

A: Solution : To record installment payment of note, cash is credited with installment amount; Interest…

Q: A Company issues four-year bonds with a $114,000 par value on January 1, 2021, at a price of…

A: Interest expense = 114000 x 5% x 6/12 = 2850 bond amortisation = (114000-109870)/8 = 516.25

Q: On January 1, 2021, Tropical Paradise borrows $36,000 by agreeing to a 5%, four-year note with the…

A: Journal entry to record issue of installment note and first two monthly payments are as under:

Q: On January 1, 2024, Tropical Paradise borrows $39,000 by agreeing to a 6%, four-year note with the…

A: Lets understand the basics.Journal entry is required to make to record event and transaction that…

Q: On November 15, 2018, Jenco signed a four-year, $100,000 note payable to Vicksburg State Bank for…

A: The installment payable for the installment is computed by dividing the value of the note by the…

Q: Note Payable problem. On November 1, 2021, Good Luck Inc. received Equipment valued at $600,000 in…

A: ANSWER     The journal entries are prepared to keep the record of day to day transactions of the…

Q: On January 1, 2021, Gundy Enterprises purchases an office building for $261,000, paying $51,000 doWH…

A: Solution 3a: Journal Entries Date Particulars Debit Credit 31-Jan-21 Interest expense…

Q: On January 12021Gundy Enterprises purchases an office building for $184,000, paying $44.000 down and…

A: A mortgage is a loan from the bank or the financial institution that helps the business to purchase…

Q: Oriole Company issued a $3,700,000, 10%, 10-year mortgage note payable to finance the construction…

A: Step 1:The required journal entries for the given transactions related to mortgage note payable are…

Q: Carla Vista Electronics issues a $353,500, 3%, 15-year mortgage note on December 31, 2019. The…

A: The installment payment schedule is one in which the yearly payment for the debt taken and the…

Q: Current Attempt in Progress Wildhorse Co. receives $372.000 when it issues a $372.000, 10%, mortgage…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: Oriole Company borrowed $790,000 on December 31, 2019, by issuing an $790,000, 9% mortgage note…

A: Lets understand the basics. When amount is borrowed against the notes then it needs to repaid with…

Q: The following amortization schedule indicates the interest and principal that Chip's Cookie…

A: Annual installment of in cash is given the data i.e., it includes both interest and principal…

Q: On January 1, 2018, Allgood Company purchased equipment and signed a six =year mortgage note for…

A: For calculating interest expense, we will need to make amortization schedule of loan over a period…

Q: E15-9B Base Line Co. receives $250,000 when it issues a $250,000, 8%, mortgage note payable to…

A: A mortgage is a type of loan used to finance the purchase of a property, such as a house or a…

Q: Larkspur, Inc. receives $260,400 when it issues a $260,400, 10% mortgage note payable to finance the…

A: Journal: Recording of a business transactions in a chronological order.

Q: Showtime​, Inc. borrows $160,000 by issuing an 8%​, 5​-year note on January ​1, 2020. Showcase must…

A: Journal entries used to record accounting transactions in chronological order under double entry…

Q: Talkington Electronics issues a $400,000, 8%, 10‐year mortgage note on December 31, 2019. The…

A: The term mortgage note alludes to a promissory note that is gotten by a home loan, which vows the…

Q: (a) Prepare an installment payments schedule for the first 4 years. (b) Prepare the entries for (1)…

A: Year Opening balance Interest @8% Total Amount due Installment paid Closing Balane a b c= b x 8% d…

Q: Upon January 1, 2020, Sally Corp. borrowed $360,000 from County Bank and signed a 15-year note…

A: It is simply a fee levied against the borrower for the use of an asset. Borrowed assets might…

Q: The company has a mortgage note payable for $1,500,000 that comes due in year 3. this note is paid…

A: Lets understand the basics. Journal entry is required to make to record event and transaction that…

Q: On January 1,2021, Eagle Company borrows $100,000 cash by signing a four-year, 7% installment note.…

A: An amortization schedule is a chart that shows the regular payments on a mortgage over time. The…

Q: Duval Co. issues four-year bonds with a $109,000 par value on January 1, 2019, at a price of…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Cullumber Company borrowed $313,000 on January 1, 2022, by issuing a $313,000, 10% mortgage note…

A: Notes payable is a written promissory agreement, wherein a borrower borrows a certain amount of…

Q: (b) Indicate the amount of mortgage note payable to be reported as a current liability and as a…

A: Introduction: The liabilities of a corporation are listed on its balance sheet, which is a common…

Q: Andrews Inc. issues a $497,000, 10% 3-year mortgage note on January 1. The note will be paid in…

A: Interest expense = Beginning carrying value of principal*Interest rate

Q: The following amortization schedule indicates the interest and principal that Chip's Cookie…

A: The journal entries are prepared to record the transactions on regular basis. The interest is paid…

Q: Tolino Company signed a 5-year note payable on January 1, 2020, of $200,000. The note requires…

A: Notes Payable is an instrument issued by the borrower to the payee. A promissory note that carries a…