How to complete the amortization schedule for orbit corp

Reference no: EM13215747

Orbit Corp. issued a $400,000, 10%, 15-year mortgage on January 1, 2007, to purchase warehouses.

Semiannual Interest Period Cash Payment Interest Expense Decrease in Principal Principal Balance
(10% x 6/12)
January 1, 2007 $400,00
June 30, 2007 $26,021 $20,000 $6,021 393,979
December 31, 2007 $26,021 $19,699 $6,322 387,657
June 30, 2008
December 31, 2008
June 30, 2009

Journal

Date Accounts and Explanations Post Ref. Debit Credit
2007
Jan 1

Jun 30

1. Complete the amortization schedule for Orbit Corp., assuming payments are made semiannually.
2. Record the journal entries for (a) issuance of mortgage on January 1, 2007, and (b) the first interest cash payment on June 30, 2007.

Reference no: EM13215747

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