Question: on december 1 2018 driscoll inc signed a 20 year...
On December 1, 2018, Driscoll, Inc. signed a 20 year mortgage in the amount of $300,000 in conjunction with the purchase of an office building. This note is payable in equal monthly installments of $1,980 which include interest computed at an annual rate of 5%. The first annual payment is made on December 31, 2018.
Prepare an amortization table for the first two payments.
How much of the first payment made on December 31, 2018, is allocated to repayment of principal?$_______________
With respect to this note, Driscoll's December 2018 income statement includes interest expense of $_______________
With respect to this note, Driscoll's January 2019 monthly income statement includes interest expense of $_______________
Driscoll's balance sheet at December 31, 2018 includes a total liability for this mortgage payable of (Do not separate into current and long-term portions.) $ _______________
The aggregate annual cash payments Driscoll will make over the 20 year life of the mortgage payable amount to $________________
Over the 20 year life of the mortgage, the amount Driscoll will pay for interest amounts to $_______________