Long-Term Notes Payable Long-term notes payable refers to the obligation of the company in the form of notes to be paid after one year or one operating cycle whichever is longer. Generally the long-term notes payable is reported in the long-term liabilities section of the balance sheet. To Journalize: The mortgage payable issuance on January 1, 2016.

Question

Want to see the full answer?

Answer 1

Question

Chapter 12, Problem 12.18E

1.

To determine

Long-Term Notes Payable

Long-term notes payable refers to the obligation of the company in the form of notes to be paid after one year or one operating cycle whichever is longer. Generally the long-term notes payable is reported in the long-term liabilities section of the balance sheet.

To Journalize: The mortgage payable issuance on January 1, 2016.

2.

To determine

Amortization Schedule:

An amortization schedule is a table that shows the details of each loan payment allocated between the principal amount and the overdue interest along with the beginning and ending balance of the loan. From the amortization schedule of the loan, the periodical interest expense, total interest expense and total payment made are known.

To Prepare: An amortization schedule for the first two payments.

3.

To determine

To Journalize: The first payment made on January 31, 2016.

4.

To determine

To Journalize: The second payment made on February 29, 2016.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

E-F:12-19 Preparing an amortization schedule and recording mortgages payable entries Marley Company purchased a building and land with a fair value of $500,000 (building, $400,000, and land, $100,000) on January 1, 2025. Marley Company signed a 20-year, 6% mortgage payable. Marley Company will make monthly payments of $3,582.16. Round to two decimal places. Explanations are not required for journal entries. Requirements 1. Journalize the mortgage payable issuance on January 1, 2025. 2. Prepare an amortization schedule for the first two payments. 3. Journalize the first payment on January 31, 2025. 4. Journalize the second payment on February 28, 2025.

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…

Kessel Company purchased a building and land with a fair market value of $475,000 (building, $300,000 and land, $175,000) on January 1, 2018. Kessel signed a 25- year, 8% mortgage payable. Kessel will make monthly payments of 3,666.13. Round to two decimal places. Explanations are not for journal entries. Requirements 1. Journalize the mortgae 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

Answer 2

Question

Chapter 12, Problem 12.18E

1.

To determine

Long-Term Notes Payable

Long-term notes payable refers to the obligation of the company in the form of notes to be paid after one year or one operating cycle whichever is longer. Generally the long-term notes payable is reported in the long-term liabilities section of the balance sheet.

To Journalize: The mortgage payable issuance on January 1, 2016.

2.

To determine

Amortization Schedule:

An amortization schedule is a table that shows the details of each loan payment allocated between the principal amount and the overdue interest along with the beginning and ending balance of the loan. From the amortization schedule of the loan, the periodical interest expense, total interest expense and total payment made are known.

To Prepare: An amortization schedule for the first two payments.

3.

To determine

To Journalize: The first payment made on January 31, 2016.

4.

To determine

To Journalize: The second payment made on February 29, 2016.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 12, Problem 12.18E

1.

To determine

Long-Term Notes Payable

Long-term notes payable refers to the obligation of the company in the form of notes to be paid after one year or one operating cycle whichever is longer. Generally the long-term notes payable is reported in the long-term liabilities section of the balance sheet.

To Journalize: The mortgage payable issuance on January 1, 2016.

2.

To determine

Amortization Schedule:

An amortization schedule is a table that shows the details of each loan payment allocated between the principal amount and the overdue interest along with the beginning and ending balance of the loan. From the amortization schedule of the loan, the periodical interest expense, total interest expense and total payment made are known.

To Prepare: An amortization schedule for the first two payments.

3.

To determine

To Journalize: The first payment made on January 31, 2016.

4.

To determine

To Journalize: The second payment made on February 29, 2016.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 12, Problem 12.18E

1.

To determine

Long-Term Notes Payable

Long-term notes payable refers to the obligation of the company in the form of notes to be paid after one year or one operating cycle whichever is longer. Generally the long-term notes payable is reported in the long-term liabilities section of the balance sheet.

To Journalize: The mortgage payable issuance on January 1, 2016.

2.

To determine

Amortization Schedule:

An amortization schedule is a table that shows the details of each loan payment allocated between the principal amount and the overdue interest along with the beginning and ending balance of the loan. From the amortization schedule of the loan, the periodical interest expense, total interest expense and total payment made are known.

To Prepare: An amortization schedule for the first two payments.

3.

To determine

To Journalize: The first payment made on January 31, 2016.

4.

To determine

To Journalize: The second payment made on February 29, 2016.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 12, Problem 12.18E

1.

To determine

Long-Term Notes Payable

Long-term notes payable refers to the obligation of the company in the form of notes to be paid after one year or one operating cycle whichever is longer. Generally the long-term notes payable is reported in the long-term liabilities section of the balance sheet.

To Journalize: The mortgage payable issuance on January 1, 2016.

2.

To determine

Amortization Schedule:

An amortization schedule is a table that shows the details of each loan payment allocated between the principal amount and the overdue interest along with the beginning and ending balance of the loan. From the amortization schedule of the loan, the periodical interest expense, total interest expense and total payment made are known.

To Prepare: An amortization schedule for the first two payments.

3.

To determine

To Journalize: The first payment made on January 31, 2016.

4.

To determine

To Journalize: The second payment made on February 29, 2016.

Answer 6

Chapter 12, Problem 12.18E

1.

To determine

Long-Term Notes Payable

Long-term notes payable refers to the obligation of the company in the form of notes to be paid after one year or one operating cycle whichever is longer. Generally the long-term notes payable is reported in the long-term liabilities section of the balance sheet.

To Journalize: The mortgage payable issuance on January 1, 2016.

Answer 7

Chapter 12, Problem 12.18E

1.

To determine

Long-Term Notes Payable

Long-term notes payable refers to the obligation of the company in the form of notes to be paid after one year or one operating cycle whichever is longer. Generally the long-term notes payable is reported in the long-term liabilities section of the balance sheet.

To Journalize: The mortgage payable issuance on January 1, 2016.

Answer 8

2.

To determine

Amortization Schedule:

An amortization schedule is a table that shows the details of each loan payment allocated between the principal amount and the overdue interest along with the beginning and ending balance of the loan. From the amortization schedule of the loan, the periodical interest expense, total interest expense and total payment made are known.

To Prepare: An amortization schedule for the first two payments.

Answer 9

2.

To determine

Amortization Schedule:

An amortization schedule is a table that shows the details of each loan payment allocated between the principal amount and the overdue interest along with the beginning and ending balance of the loan. From the amortization schedule of the loan, the periodical interest expense, total interest expense and total payment made are known.

To Prepare: An amortization schedule for the first two payments.

Answer 10

3.

To determine

To Journalize: The first payment made on January 31, 2016.

Answer 11

3.

To determine

To Journalize: The first payment made on January 31, 2016.

Answer 12

4.

To determine

To Journalize: The second payment made on February 29, 2016.

Answer 13

4.

To determine

To Journalize: The second payment made on February 29, 2016.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 17

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 long-term notes payable are payable after one year or one operating cycle. An amortization schedule shows the details of each loan payment allocated between the principal amount and the overdue interest along with the beginning and ending balance

To Journalize: The first payment made on January 31, 2016.

To Journalize: The second payment made on February 29, 2016.

Want to see the full answer?

Chapter 12 Solutions