ab This Question: 1 pt 21 of 50 (20 complete) This Test: 50 pts possible see On

Question

ab This Question: 1 pt 21 of 50 (20 complete) This Test: 50 pts possible see On January 1, 2018, Brazos Company purchased equipment and signed a six-year mortgage note for S97000 at 15% The note will be paid in equal annual installments of $25,631, beginning January 1, 2019. On January 1, 2019, the journal entry to record the first installment payment will include a answer to the nearest whole number.) (Round your see O A. debit to Interest Expense for $14,550 O B. credit to Cash for $11081 O C. debit to Mortgage Payable for $25,631 0 D. credit to Mortgage Payable for $97,000 ee s Click to select your answer

Explanation / Answer

Answer:

Calculation of Interest on first Installment

97000*15/100 = 14550

Therefore Installment repayment = 25631-14550 = 11081

Journal on 1st Jan 2018

Interest A/c   Dr.                                14550

Loan A/c       Dr.                                11081

             To Cash A/c                          25631

( Being 1st insllamnet paid)

As per above discusiion option A is correct

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