Ethan Company purchased a building with a market value of $325,000 and land with a market value of $35,000 on January 1, 2025. Ethan Company paid $40,000 cash and signed a 25-year, 12% mortgage payable for the balance.Requirements1.Journalize the January 1, 2025, purchase.2. Journalize the first monthly payment of $3,370 on January 31, 2025. (Round to the nearest dollar.)Requirement 1. Journalize the January 1, 2025, purchase. (Record debits first, then credits. Select explanations on the last line of the journal entry.)DateJan. 1, 2025Accounts and ExplanationsDebitCredit

Step 1:Answer 1.Journal entry to record January 1, 2025 purchase:DateAccount Titles and…

Answered: Ethan Company purchased a building with…

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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Keel Company purchased a building and land with a fair market value of $650,000 (building, $550,000 and land, $100,000) on January 1, 2018. Keel signed a 20-year, 8% mortgage payable. Keel will make monthly payments of $5,436.86. Round to two decimal places. Explanations are not required for journal entries. 1. Journalize the mortgage payable issuance on January 1, 2018. 2. Prepare an amortization schedule for the first two payments. 3. Journalize the first payment on January 31, 2018. 4. Journalize the second payment on February 28, 2018. Requirement 2. Prepare an amortization schedule for the first two payments. (Round all numbers to the nearest cent.) Beginning Principal Interest Total Ending Balance Payment Expense Payment Balance 1/1/2018 1/31/2018 2/28/2018
Elie Company purchased a building with a market value of $275,000 and land with a market value of $50,000 on January 1, 2024. Elie Company paid $25,000 cash and signed a 20-year, 6% mortgage payable for the balance. Requirements 1. 2. Journalize the January 1, 2024, purchase. Journalize the first monthly payment of $2,149 on January 31, 2024. (Round to the nearest dollar.) Requirement 1. Journalize the January 1, 2024, purchase. (Record debits first, then credits. Select explanations on the last line of the journal entry.) Date Accounts and Explanations 2024 Jan. 1 Debit O Credit
Kessel Company purchased a building and land with a fair market value of $525,000 (building, $275,000 and land, S250,000) on January 1, 2018. Kessel signed a 15-year, 10% mortgage payable. Kessel will make monthly payments of $5,641.68. Round to two decimal places. Explanations are not required for journal entries. Read the requirements. Requirement 1. Journalize the mortgage payable issuance on January 1, 2018. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Accounts Debit Credit O Requirements 2018 Jan. 1 Building 275,000.00 Land 250,000.00 1. Journalize the mortgage payable issuance on January 1, 2018. 2. Prepare an amortization schedule for the first two payments. 3. Journalize the first payment on January 31, 2018. 4. Journalize the second payment on February 28, 2018. Mortgage Payable 525,000.00 Requirement 2. Prepare an amortization schedule for the first two payments. (Round all numbers f Beginning Principal Interest Total Ending Print…
Kaler Company purchased a building and land with a fair market value of $600,000 (building, $400,000 and land, $200,000) on January 1, 2024. Kaler signed a 30-year, 13% mortgage payable. Kaler will make monthly payments of $6,637.20. Round to two decimal places. Explanations are not required for journal entries. Read the requirements. Requirement 1. Journalize the mortgage payable issuance on January 1, 2024. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Accounts Debit Credit 2024 Jan. 1 Building 400,000.00 Land 200,000.00 Mortgage Payable 600,000.00 Requirement 2. Prepare an amortization schedule for the first two payments. (Round all numbers to the nearest cent.) Principal Payment Beginning Interest Total Ending Balance Expense Payment Balance 1/1/2024 $ 600,000.00 1/31/2024 $ 600,000.00 $ 6,500.00 $ 6,637.20 2/28/2024 Requirements 1. Journalize the mortgage payable issuance on January 1, 2024. 2. Prepare an amortization schedule for the…
Kanta Company purchased a building and land with a fair market value of $600,000 (building, $425,000 and land, $175,000) on January 1, 2024. Kanta signed a 30-year, 13% mortgage payable. Kanta will make monthly payments of $6,637.20. Round to two decimal places. Explanations are not required for journal entries. Read the requirements. Requirement 1. Journalize the mortgage payable issuance on January 1, 2024. (Record debits first, then credits. Exclude explanations from any journal entries.) Accounts Debit Date 2024 Jan. 1 C Credit Requirements 1. Journalize the mortgage payable issuance on January 1, 2024. 2. Prepare an amortization schedule for the first two payments. 3. Journalize the first payment on January 31, 2024. 4. Journalize the second payment on February 28, 2024. Print Done
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On January 1, 2021, Gundy Enterprises purchases an office for $360,000, paying $60,000 down and borrowing the remaining $300,000, signing a 7%, 10-year mortgage. Installment payments of $3,483.25 are due at the end of each month, with the first payment due on January 31, 2021.Required:1. Record the purchase of the building on January 1, 2021.2. Complete the first three rows of an amortization schedule similar to Illustration 9–1.3. Record the first monthly mortgage payment on January 31, 2021. How much of the first payment goes to interest expense and how much goes to reducing the carrying value of the loan?4. Total payments over the 10 years are $417,990 ($3,483.25 × 120 monthly payments). How much of this is interest expense and how much is actual payment of the loan?
Bramble Company purchased a building on January 2 by signing a long-term $606000 mortgage with monthly payments of $5100. The mortgage carries an interest rate of 10 percent. The entry to record the first monthly payment will include a credit to the Mortgage Payable account for $5100. O credit to the Cash account for $5050. O debit to the Interest Expense account for $5050. O debit to the Cash account for $5100.
On January 1, 2021, Gundy Enterprises purchases an office building for $184,000, paying $44.000 down and borrowing the remaining $140,000signing a 7%10-year mortgageInstallment payments of $are due at the end of each monthwith the first payment due on January 31, 2021 Required: 1. Record the purchase of the building on January 12021. (no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Kessel Company purchased a building and land with a fair market value of $525,000 (building, $275,000 and land, $250,000) on January 1, 2018. Kessel signed a 15-year, 10% mortgage payable. Kessel will make monthly payments of S5,641.68. Round to two decimal places. Explanations are not required for journal entries. Read the reguirements. Re X Jebits first, then credits. Exclude explanations from any journal entries.) Requirements dit 1. Journalize the mortgage payable issuance on January 1, 2018. 2. Prepare an amortization schedule for the first two payments. 3. Journalize the first payment on January 31, 2018. 4. Journalize the second payment on February 28, 2018. Print Done
On January 1, 2021, Stoops Entertainment purchases a building for $610,000, paying $110,000 down and borrowing the remaining $500,000, signing a 9%, 15-year mortgage. Installment payments of $5,071.33 are due at the end of each month, with the first payment due on January 31, 2021. Required: 1. Record the purchase of the building on January 1, 2021. 2. Complete the first three rows of an amortization schedule. 3. Record the first monthly mortgage payment on January 31, 2021. How much of the first payment goes to interest expense and how much goes to reducing the carrying value of the loan? 4. Total payments over the 15 years are $912,839 ($5,071.33 × 180 monthly payments). How much of this is interest expense and how much is actual payment of the loan?
On January 1, 2021, Gundy Enterprises purchases an office building for $261,000, paying $51,000 down and borrowing the remaining $210,000, signing a 7%, 10-year mortgage. Installment payments of $2,438.28 are due at the end of each month, with the first payment due on January 31, 2021. Required: 1. Record the purchase of the building on January 1, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the purchase of the building. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2021

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