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Kaman
Company purchased a building and land with a fair market value of
$575,000
(building,
$475,000
and land,
$100,000)
on January 1,
2018.
Kaman
signed a
25-year,
15%
mortgage payable.
Kaman
will make monthly payments of
$7,364.78.
Round to two decimal places. Explanations are not required for journal entries.Read the requirements
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.Requirement 1. Journalize the mortgage payable issuance on January 1,
2018.
(Record debits first, then credits. Exclude explanations from any journal entries.)
| Date | Accounts | Debit | Credit |
| 2018 | | | |
| Jan. 1 | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Requirement 2. Prepare an amortization schedule for the first two payments. (Round all numbers to the nearest cent.)
| | Beginning | Principal | Interest | Total | Ending |
| | Balance | Payment | Expense | Payment | Balance |
| 1/1/2018 | | | | | |
| 1/31/2018 | | | | | |
| 2/28/2018 | | | | | |
Requirement 3. Journalize the first payment on January 31,
2018.
(Enter amounts to the nearest cent. Record debits first, then credits. Exclude explanations from any journal entries.)
| Date | Accounts | Debit | Credit |
| 2018 | | | |
| Jan. 31 | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Requirement 4. Journalize the second payment on February 28,
2018.
(Enter amounts to the nearest cent. Record debits first, then credits. Exclude explanations from any journal entries.)
| Date | Accounts | Debit | Credit |
| 2018 | | | |
| Feb. 28 | | | |
| | | | | | |
| | | | | | |
| | | | | | |
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Answer & Explanation
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