The journal entry to record the first semiannual payment

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Reference no: EM131618740

On January? 1, Clive Corporation signed a? $175,000, 8%, 30−year mortgage that requires semiannual payments of? $7,735 on June 30 and December 31 of each year. The journal entry to record the first semiannual payment would be? (round interest calculation to the nearest? dollar) to:

A. debit Interest? Expense, $7,000; debit Mortgage? Payable, $735; credit? Cash, $7,735.

B. debit Interest? Expense, $7,000; debit Mortgage? expense, $735; credit? Cash, $7,735.

C. debit Mortgage? Payable, $7,735; credit? Cash, $7,735.

D. debit Interest? Expense, $735; debit Mortgage? Payable, $7,000; credit? Cash, $7,735.

2. Juarez Mining purchased a vein of coal ore for? $3,500,000. It is estimated that? 25,000,000 tons of ore are available to be extracted. The estimated depletion rate for each ton of ore? (rounded to the nearest? cent) is:

A. ?$0.14. B. ?$0.15. C. ?$0.13. D. ?$1.40.

Reference no: EM131618740

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