ACC 550 Fordyce Electronics

ACC 550 Fordyce Electronics - 15,463 14,904 14,323 $13,433...

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Fordyce Electronics issues a $400,000, 8%, 10-year mortgage note on December 31,  2007. The proceeds from the note are to be used in financing a new research laboratory.  The terms of the note provide for semiannual installment payments, exclusive of real  estate taxes and insurance, of $29,433. Payments are due June 30 and December 31.  Complete the installment payments schedule for the first 2 years. (Round answers to 0  decimal places, e.g. 125. Use rounded amounts for future calculations.)  Prepare the entries for (1) the loan and (2) the first two installment payments. (For  multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3,  2.) Show how the total mortgage liability should be reported on the balance sheet at  December 31, 2008. (a) Semiannual Interest Period Cash Payment Interest Expense Reduction of Principal Principal Balance Issue Date 1 2 3 4 $29,433 29,433 29,433 29,433 $16,000
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Unformatted text preview: 15,463 14,904 14,323 $13,433 13,970 14,529 15,110 $57,042 $400,000 386,567 372,597 358,068 342,958 (b) 2007 Dec. 31 Cash . ............................................................ 400,000 Mortgage Notes Payable. ................................ 400,000 2008 June 30 Interest Expense. ...................................................... 16,000 Mortgage Notes Payable. .......................................... 13,433 Cash. ................................................................ 29,433 Dec. 31 Interest Expense. ...................................................... 15,463 Mortgage Notes Payable. .......................................... 13,970 Cash. ................................................................ 29,433 (c) 12/31/08 Current Liabilities Current portion of mortgage notes payable $ 29,639 * * Long-term Liabilities Mortgage notes payable, due 2017 $342,958 ** * *($14,529 + $15,110) **($372,597 $14,529 $15,110)...
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ACC 550 Fordyce Electronics - 15,463 14,904 14,323 $13,433...

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