On 1/1/01, The Silence, LLC entered a mortgage in order to purchase new facilities. Assuming the interest rate was 5%, number of monthly payments was for 10 years, and the total purchase price of the facilities was $1,000,000 - prepare the amortization schedule for The Silence. Prepare the Journal Entry for the issuance and the 3rd installment payment After 7 years, The Silence decided to pay the remaining balance off, record the entry.

On 1/1/01, The Silence, LLC entered a mortgage in order to purchase new facilities. Assuming the interest rate was 5%, number of monthly payments was for 10 years, and the total purchase price of the facilities was $1,000,000 - prepare the amortization schedule for The Silence. Prepare the Journal Entry for the issuance and the 3rd installment payment After 7 years, The Silence decided to pay the remaining balance off, record the entry.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

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On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
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