The annual interest rate on the mortgage payable was 8.50%. Interest expense for one-half month...
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The annual interest rate on the mortgage payable was 8.50%. Interest expense for one-half month should be computed because the building and land were purchased and the liability incurred on June 16. Q:What would debit/credit be?
transaction it's referencing: Byte purchased a building and the land it is on for $125,000, to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $20,000. The balance of the cost is to be allocated to the building. Byte made a cash down payment of $12,500 and executed a mortgage for the balance. The mortgage is payable in eight equal annual installments beginning July 1.
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