accounting pro accounting pro accounting pro Weygandt, Accounting Principles, 12

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accounting pro accounting pro accounting pro Weygandt, Accounting Principles, 12e Accounting Principles I & II (AC Gradebook ORION Downloadable eTextbook FULL SCREEN PRINTER VERSION Dreiling Company borrowed $346,500 on January 1, 2017, by issuing a $346,500 10% mortgage note payable. The terms call for annual installment payments of $49,500 on December 31 Prepare the journal entries to record the mortgage loan and the first two installment payments. (Round answers to O decimal places, e.g. 13,250. Credit account titles are automaticalil amount is entered. Do not indent manually.) Date Account Titles and Explanation Jan. 1, 2017 Cash Debit Credit 346500 346500 Mortgage Payable Dec. 31, 2017 Interest Expense 34650 Mortgege Payable 14850 Cash 19500 Dec. 31, 2018 Interest Expense Mortgege Payable Cash OF ACCOUNTS Indicate the amount of mortgage note payable to be reported as a current liability and as a long-term liability at December 31, 2017. (Round answers to 0 decimal places, e.g. 15,2s0.) Current liability Long-term liablitys All Rights Reserved. A Division of John WleyY & Sons Ins

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Part-1 Date Account Debit Credit Jan 1 2017 Cash        346,500 Mortgage Payable            346,500 Dec 31 2017 Interest Expense 346500*10%           34,650 Mortgage payable 49500-34650           14,850 Cash        49,500.00 Dec 31 2018 Interest Expense (346500-14850)*10%           33,165 Mortgage payable 49500-34650           16,335 Cash        49,500.00 Current Liability Zero as there is no interest liability. Interest already paid during the year Long Term Liability 346500-14850=331650 Mortgage Payable Question -1 Par Value before Stock Dividend 7 Par Value after Stock Dividend 7 No of Existing Share 536200/7 76600 Stock Dividend 10% 76600*10% 7660 Common Stock 7660*7 53620 Paid in Capital in excess at par 7660*(15-7) 61280 Retained Earning 7660*15 114900 Existing Additional New Balance Common Stock 536200 53620 589820 Paid in Capital in excess at par 23000 61280 84280 Retained Earning 168000 -114900 53100 727200

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