Please explain in full and tell why other options are incorrect.... Thank you in advance On 1 October 2019 Point West Property Pty Ltd purchased a building for $1,250, 000, paying $250,000 as a deposit with the balance being financed by Hobart Commercial Bank. The cost of debt relating to the Mortgage was 12% per annum. The monthly repayment was $14 000. The entry to record the payment on 1 November 2019 is: Group of answer choices a. DR: Interest expense $10 000; DR: Mortgage payable $4,000; and CR: Cash $14 000 b. DR: Mortgage payable $14 000; CR: Cash $14 000 c. DR: Interest expense $10 000; DR: Cash $4,000; and CR: Mortgage payable $14 000 d. DR: Interest expense $14 000; CR: Cash $14 000
Please explain in full and tell why other options are incorrect.... Thank you in advance On 1 October 2019 Point West Property Pty Ltd purchased a building for $1,250, 000, paying $250,000 as a deposit with the balance being financed by Hobart Commercial Bank. The cost of debt relating to the Mortgage was 12% per annum. The monthly repayment was $14 000. The entry to record the payment on 1 November 2019 is: Group of answer choices a. DR: Interest expense $10 000; DR: Mortgage payable $4,000; and CR: Cash $14 000 b. DR: Mortgage payable $14 000; CR: Cash $14 000 c. DR: Interest expense $10 000; DR: Cash $4,000; and CR: Mortgage payable $14 000 d. DR: Interest expense $14 000; CR: Cash $14 000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please explain in full and tell why other options are incorrect....
Thank you in advance
On 1 October 2019 Point West Property Pty Ltd purchased a building for $1,250, 000, paying $250,000 as a deposit with the balance being financed by Hobart Commercial Bank. The cost of debt relating to the Mortgage was 12% per annum. The monthly repayment was $14 000. The entry to record the payment on 1 November 2019 is:
Group of answer choices
a. DR: Interest expense $10 000; DR: Mortgage payable $4,000; and CR: Cash $14 000
b. DR: Mortgage payable $14 000; CR: Cash $14 000
c. DR: Interest expense $10 000; DR: Cash $4,000; and CR: Mortgage payable $14 000
d. DR: Interest expense $14 000; CR: Cash $14 000
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