Prepare entries for loan and first two installment payments

Assignment Help Accounting Basics

Reference no: EM131989121

Problem

Talkington Electronics issues a $400,000, 8%, 10-year mortgage note on December 31, 2013. The proceeds from the note are to be used in fi nancing 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.

Instructions

(a) Prepare an installment payments schedule for the first 2 years.
(b) Prepare the entries for (1) the loan and (2) the first two installment payments.
(c) Show how the total mortgage liability should be reported on the balance sheet at December 31, 2014.

Reference no: EM131989121

Questions Cloud

Round your answers to the nearest whole number : Record journal entries for each of the above transactions. Round your answers to the nearest whole number.

What is the highest price that talboe could pay : What is the highest price that Talboe could pay the outside supplier for each wheel and still be economically indifferent between making or buying the wheels?

What sources of power do you personally pull from : Why do you believe that is the case? Remember to define, in your own words, the source of power you mention.

How would you define influence : How would you define power? How would you define influence? What are some distinctions between power and influence in an organizational setting?

Prepare entries for loan and first two installment payments : Prepare the entries for (1) the loan and (2) the first two installment payments. Prepare an installment payments schedule for the first 2 years.

How would you judge our own leadership and effectiveness : The main problem occurs when the division of labor is not clear, and the meeting will be changed or cancelled due to the change of time group member time.

Determine the top three functions of the hr department : Determine the top three (3) functions of the Human Resources Department and then explain why you believe they add value to the business model.

Prepare a competitive analysis : Prepare a competitive analysis, differentiation strategy, and risk assessment for this venture.

Compute prior service cost amortization : Tamarisk Corporation amended its pension plan on January 1, 2017, and granted $153,180 of prior service costs. Compute prior service c

User Account

All Pages