Problem 10.7A

# Problem 10.7A - Student Name: Class: McGraw-Hill/Irwin...

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Student Name: Class: McGraw-Hill/Irwin Problem 10-04 a. Explain whether the amounts of interest expense and the reductions in unpaid principal are likely to change in any predictable pattern from month to month. QUICK LUBE General Journal 2007 Account Titles Debit Credit Oct 1 Interest expense Mortgage note payable Cash Nov 1 Interest expense Mortgage note payable Cash QUICK LUBE Amortization Table (12%, 30-Year Mortgage Note Payable for \$1,080,000; Payable in 360 Monthly Installments of \$11,110) Interest Payment Monthly Interest Principal Unpaid Period Date Payment Expense Reduction Balance Issue date Sept. 1, 2007 \$1,080,000 1 Oct. 1 \$11,110 \$10,800 \$310 1,079,690 2 Nov. 1 11,110 10,797 313 1,079,377 3 Dec. 1 4 Jan. 1, 2008 b. Will any amounts relating to this 30-year mortgage be classified as current liabilities in the December 31, 2007 balance sheet? Explain, but you need not compute additional dollar amounts.

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Given Data P10-04: QUICK LUBE Date of mortgage note September 1, 2007 Amount of mortgage note \$1,080,000 Annual interest 12% Period for full amortization (months) 360 Amortization Table (12%, 30-Year Mortgage Note Payable for \$1,080,000; Payable in 360 Monthly Installments of \$11,110) Interest Payment Monthly Interest Principal Unpaid Period Date Payment Expense Reduction Balance Issue date Sept. 1, 2007 \$1,080,000 1 Oct. 1 \$11,110 \$10,800 \$310 1,079,690 2 Nov. 1 11,110 10,797 313 1,079,377
Student Name: Class: McGraw-Hill/Irwin Problem 10-06 PARK RAPIDS LUMBER COMPANY General Journal Date Account Titles Debit Credit

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## This note was uploaded on 12/18/2010 for the course BME 254788 taught by Professor Mitchell during the Spring '10 term at SUNY Albany.

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Problem 10.7A - Student Name: Class: McGraw-Hill/Irwin...

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