Solution-The first two installment payments

The first two installment payments

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Reference no: EM131130592

1. Fordyce Electronics issues a $400,000, 8%, 10-year mortgage note on December 31, 2009. The proceeds from the note are to be used in financing 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.

Reference no: EM131130592

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The first two installment payments

Reference no: EM131130592

Reference no: EM131130592

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