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32. Use Debit or Credit, Buyer or Seller for answers: Purchase Price- Earnest Mo

ID: 2595065 • Letter: 3

Question

32. Use Debit or Credit, Buyer or Seller for answers: Purchase Price- Earnest Money Deposit - New Financing of 1t Mortgage Broker's Commission- Recording Charges for Deed- Release or Reconveyance Charges Title Charges (what is used in Utah) Taxes in Arrears- Taxes in Advance- Second Mortgage held by seller- Harry, the landlord collected a $1200 security deposit from his tenants, Trisha and Ben. The lease specifies rent is $1100 per month. Closing is March 15th. How much will the seller credit the buyer at closing? 33. 34. Rent is payable in advance in advance at $800 per month and is due on the 10. Closing is July 20th. Who is debited or credited and what is the amount?

Explanation / Answer

(A) Debit

Buyer

Buyer

Debit

Seller

Credit

Seller

Debit

Credit

Credit

(B) Seller will credit with Rs. 5500 (11000/2) at the closing.

(c) Seller will be credited and Buyer will be debited by Rs. 533 (800*20/30).

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