On January 1, 2018, Gundy Enterprises purchases an office for $173,000, paying $
ID: 2435231 • Letter: O
Question
On January 1, 2018, Gundy Enterprises purchases an office for $173,000, paying $43,000 down and borrowing the remaining $130,000, signing a 9%, 10-year mortgage. Installment payments of $1,646.79 are due at the end of each month, with the first payment due on January 31, 2018.
2. Complete the first three rows of an amortization schedule. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
Problem 9-1A Part 2 2. Complete the first three rows of an amortization schedule. (Do not round intermediate calculations. Round your final answers to 2 decimal places. Interest Decrease in Date Cash Paid Expense Carrying Value Carrying Value $ 130,000.00 01/01/18 01/31/18 02/28/18 975.00 969.96Explanation / Answer
Date
Cash paid
Interest expense
Decrease in carrying value
Carrying value
(Carrying value*9%*1/12)
(Cash paid - Interest expense)
01.01.2018
$ 130,000.00
01.31.2018
$ 1,646.79
$ 975.00
$ 671.79
$ 129,328.21
02.28.2018
$ 1,646.79
$ 969.96
$ 676.83
$ 128,651.38
Date
Cash paid
Interest expense
Decrease in carrying value
Carrying value
(Carrying value*9%*1/12)
(Cash paid - Interest expense)
01.01.2018
$ 130,000.00
01.31.2018
$ 1,646.79
$ 975.00
$ 671.79
$ 129,328.21
02.28.2018
$ 1,646.79
$ 969.96
$ 676.83
$ 128,651.38