Mortgage Payable Mortgages payable is referred to the long-term debts owed by the business that are secured with the specific assets of the business. In other words under mortgages payable, the borrower promises to transfer the legal ownership of some specified assets, pledged as collateral security, in the event of non-payment of the mortgages debt on maturity to the creditor. Like the long-term debt, the total mortgages payable has some current portion that is required to be paid within a year and some other portion that is paid after one year. To Journalize: The purchase of building and land at their market value.

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Answer 1

Question

Chapter 12, Problem 12.2SE

1.

To determine

Mortgage Payable

Mortgages payable is referred to the long-term debts owed by the business that are secured with the specific assets of the business. In other words under mortgages payable, the borrower promises to transfer the legal ownership of some specified assets, pledged as collateral security, in the event of non-payment of the mortgages debt on maturity to the creditor. Like the long-term debt, the total mortgages payable has some current portion that is required to be paid within a year and some other portion that is paid after one year.

To Journalize: The purchase of building and land at their market value.

2.

To determine

To Journalize: The first monthly payment of $4,561 on January 31, 2016.

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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

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.

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…

Answer 2

Question

Chapter 12, Problem 12.2SE

1.

To determine

Mortgage Payable

Mortgages payable is referred to the long-term debts owed by the business that are secured with the specific assets of the business. In other words under mortgages payable, the borrower promises to transfer the legal ownership of some specified assets, pledged as collateral security, in the event of non-payment of the mortgages debt on maturity to the creditor. Like the long-term debt, the total mortgages payable has some current portion that is required to be paid within a year and some other portion that is paid after one year.

To Journalize: The purchase of building and land at their market value.

2.

To determine

To Journalize: The first monthly payment of $4,561 on January 31, 2016.

Expert Solution & Answer

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Answer 3

Question

Chapter 12, Problem 12.2SE

1.

To determine

Mortgage Payable

Mortgages payable is referred to the long-term debts owed by the business that are secured with the specific assets of the business. In other words under mortgages payable, the borrower promises to transfer the legal ownership of some specified assets, pledged as collateral security, in the event of non-payment of the mortgages debt on maturity to the creditor. Like the long-term debt, the total mortgages payable has some current portion that is required to be paid within a year and some other portion that is paid after one year.

To Journalize: The purchase of building and land at their market value.

2.

To determine

To Journalize: The first monthly payment of $4,561 on January 31, 2016.

Expert Solution & Answer

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Answer 4

Question

Chapter 12, Problem 12.2SE

1.

To determine

Mortgage Payable

Mortgages payable is referred to the long-term debts owed by the business that are secured with the specific assets of the business. In other words under mortgages payable, the borrower promises to transfer the legal ownership of some specified assets, pledged as collateral security, in the event of non-payment of the mortgages debt on maturity to the creditor. Like the long-term debt, the total mortgages payable has some current portion that is required to be paid within a year and some other portion that is paid after one year.

To Journalize: The purchase of building and land at their market value.

2.

To determine

To Journalize: The first monthly payment of $4,561 on January 31, 2016.

Expert Solution & Answer

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Answer 5

Chapter 12, Problem 12.2SE

1.

To determine

Mortgage Payable

Mortgages payable is referred to the long-term debts owed by the business that are secured with the specific assets of the business. In other words under mortgages payable, the borrower promises to transfer the legal ownership of some specified assets, pledged as collateral security, in the event of non-payment of the mortgages debt on maturity to the creditor. Like the long-term debt, the total mortgages payable has some current portion that is required to be paid within a year and some other portion that is paid after one year.

To Journalize: The purchase of building and land at their market value.

2.

To determine

To Journalize: The first monthly payment of $4,561 on January 31, 2016.

Answer 6

Chapter 12, Problem 12.2SE

1.

To determine

Mortgage Payable

Mortgages payable is referred to the long-term debts owed by the business that are secured with the specific assets of the business. In other words under mortgages payable, the borrower promises to transfer the legal ownership of some specified assets, pledged as collateral security, in the event of non-payment of the mortgages debt on maturity to the creditor. Like the long-term debt, the total mortgages payable has some current portion that is required to be paid within a year and some other portion that is paid after one year.

To Journalize: The purchase of building and land at their market value.

Answer 7

Chapter 12, Problem 12.2SE

1.

To determine

Mortgage Payable

Mortgages payable is referred to the long-term debts owed by the business that are secured with the specific assets of the business. In other words under mortgages payable, the borrower promises to transfer the legal ownership of some specified assets, pledged as collateral security, in the event of non-payment of the mortgages debt on maturity to the creditor. Like the long-term debt, the total mortgages payable has some current portion that is required to be paid within a year and some other portion that is paid after one year.

To Journalize: The purchase of building and land at their market value.

Answer 8

2.

To determine

To Journalize: The first monthly payment of $4,561 on January 31, 2016.

Answer 9

2.

To determine

To Journalize: The first monthly payment of $4,561 on January 31, 2016.

Answer 10

Expert Solution & Answer

Answer 11

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Answer 12

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Answer 13

Ch. 12 - Flipco signed a 10-year note payable on January 1,...Ch. 12 - Daniels's bonds payable carry a stated interest...Ch. 12 - A bond that matures in installments at regular...Ch. 12 - Prob. 4QC Ch. 12 - Nicholas Smith Fitness Gym has 700,000 of 20-year...Ch. 12 - Prob. 6QC Ch. 12 - Prob. 7QC Ch. 12 - The debt to equity ratio is calculated as a. Total...Ch. 12 - Mike Gordon wishes to have 80,000 in five years....Ch. 12 - Prob. 10BQC

Solution Summary: The author explains that mortgages payable are long-term debts owed by a business that are secured with the specific assets of the business. The amount of mortgage payable would be the net value of building and land minus the cash

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To Journalize: The first monthly payment of $4,561 on January 31, 2016.

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