Nguyen inc issues a $658000, 15%, 10 year mortgage note on December 31 to obtain

Question

Nguyen inc issues a $658000, 15%, 10 year mortgage note on December 31 to obtain financing for a new building. The terms provide for semiannual installment payments of $64545. Prepare the entry to Record the mortgage loan on December 32 Record the first installment payment Nguyen inc issues a $658000, 15%, 10 year mortgage note on December 31 to obtain financing for a new building. The terms provide for semiannual installment payments of $64545. Prepare the entry to Record the mortgage loan on December 32 Record the first installment payment Record the mortgage loan on December 32 Record the first installment payment

Explanation / Answer

Solution-

Calculation-

$658,000*10%* 6/12 = $32,900*

Date Account Titles & Explanation Debit Credit Dec 31 Cash $658,000 Mortgage Notes Payable $658,000 June 30 Interest Expense $32,900 Mortgage Notes Payable $31,645 Cash $64,545

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