Long-term note and mortgage

Assignment Help Accounting Basics

Reference no: EM13157803

A corporation borrowed money from a bank to build a building. The long-term note signed by the corporation is secured by a mortgage that pledges title to the building as security for the loan. The corporation is to pay the bank $80,000 each year for 10 years to repay the loan. Which of the following relationships can you expect to apply to the situation?

A. The amount of interest expense will remain constant over the 10-year period.

B. The balance of mortgage payable at a given balance sheet date will be reported as a long-term liability.

C. The amount of interest expense will decrease each period the loan is outstanding, while the portion of the annual payment applied to the loan principal will increase each period.

D. The balance of mortgage payable will remain a constant amount over the 10-year period.

Reference no: EM13157803

Questions Cloud

Statement regarding capitalization criteria : Which of the following is a correct statement of one of the capitalization criteria?

Local welfare agency that exercises consumer sovereignty : Imagine there is a local welfare agency that exercises consumer sovereignty by giving a specified amount of cash to a family to use for food. The family is eligible for the amount, but the agency does not follow up to make sure the family spent th..

State what is the van''t hoff factor for hx in water : What is the van't Hoff factor for HX in water? b) What is the molality of X1- ions in the solution?

What global social interests or responsibilities : What global social interests or responsibilities, if any, do we have as consumers to the losers of globalization? Discuss and justify your postings and responses with other students in our course.

Long-term note and mortgage : A corporation borrowed money from a bank to build a building. The long-term note signed by the corporation is secured by a mortgage that pledges title to the building as security for the loan. The corporation is to pay the bank $80,000 each year fo..

Contrast the three theories of helping : Compare and contrast the three theories of helping: social exchange, social norms, and the evolutionary theory. Define altruism and provide an example. Explain what is meant by "genuine altruism" and provide an example.

Axel will purchase the equipment that cost the least : Plan A: MRE offers to let Axel pay $55,000 each year for five years. The payments include interest at 12% per year. Plan B: Westernhome will let Axel make a single payment of $425,000 at the end of five years. This payment includes both principal and..

How much is the first payment : Suppose that, at the last minute, the company decides to purchase the same machinery at the same rate (8 percent), with payments decreasing by $7,500 each year. How much is the first payment?

Determine whether the mechanism is valid for reaction : Consider the following overall reaction which is experimentally observed to be second order in AB and zero order in C: AB + C ----> A + BC Determine whether the mechanism below is valid for this reaction.

User Account

All Pages