Date Account Titles and Explanation Debit Credit Dec. 31, 2014 June 30, 2015 Dec

Question

Date Account  Titles and Explanation Debit Credit Dec. 31, 2014 June 30, 2015 Dec. 31, 2015 Exercise 10-15 Tucki Co. receives $240,000 when it issues a $240,000, 8%, mortgage note payable to finance the construction of a building at December 31, 2014. The terms provide for semiannual installment payments of $17,660 on June 30 and December 31. Prepare the journal entries to record the mortgage loan and the first two installment payments. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Explanation / Answer

JournalEntries

JournalEntries

Dec 31,2014 Cash 240,000.00     Mortgage Notes Payable 240,000.00 June 30 ,2015 Mortgage Notes Payable 8,060.00 Interest Expense * 9,600.00       Cash 17,660.00 Dec 31,2015 Mortgage Notes Payable 8,382.40 Interest Expense ** 9,277.60       Cash 17,660.00

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.