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Question: cullumber company receives 385000 when it issues a ...

Question details

Cullumber Company receives $ 385,000 when it issues a $ 385,000,  8%, mortgage note payable to finance the construction of a building at December 31, 2017. The terms provide for annual installment payments of $ 44,979 on December 31.

Prepare an amortization schedule of a mortgage note for two years. (Round answers to 0 decimal places, e.g. 5,275.)

Annual
Interest
Period

Cash
Payment

Interest
Expense

Reduction
of Principal

Principal
Balance

Issue date

$ enter a dollar amount rounded to 0 decimal places $ enter a dollar amount rounded to 0 decimal places $ enter a dollar amount rounded to 0 decimal places $ enter a dollar amount rounded to 0 decimal places

12/31/18

enter a dollar amount rounded to 0 decimal places enter a dollar amount rounded to 0 decimal places enter a dollar amount rounded to 0 decimal places enter a dollar amount rounded to 0 decimal places

12/31/19

enter a dollar amount rounded to 0 decimal places enter a dollar amount rounded to 0 decimal places enter a dollar amount rounded to 0 decimal places enter a dollar amount rounded to 0 decimal places

List of Accounts

Prepare the journal entry to record the mortgage loan. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31, 2017

enter an account title for the journal entry on December 31, 2017

enter a debit amount

enter a credit amount

enter an account title for the journal entry on December 31, 2017

enter a debit amount

enter a credit amount

Prepare the journal entries to record the first two installment payments. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

First Installment Payment

Dec. 31, 2018

enter an account title for the journal entry on December 31, 2018

enter a debit amount

enter a credit amount

enter an account title for the journal entry on December 31, 2018

enter a debit amount

enter a credit amount

enter an account title for the journal entry on December 31, 2018

enter a debit amount

enter a credit amount

Second Installment Payment

Dec. 31, 2019

enter an account title for the journal entry on December 31, 2019

enter a debit amount

enter a credit amount

enter an account title for the journal entry on December 31, 2019

enter a debit amount

enter a credit amount

enter an account title for the journal entry on December 31, 2019

enter a debit amount

enter a credit amount

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