Question :
44) On January 1, 2011, the company borrowed $200,000 from : 1253322
44) On January 1, 2011, the company borrowed $200,000 from Suwannee Local Bank for 10 years at 6%. The company will make equal annual payments of $27,173.58 on December 31 of each year, beginning December 31, 2011.
Part A: Complete the amortization schedule for the first four loan payments:
Mortgage balance
Annual payment
Interest portion of mortgage
Amount of mortgage reduction
Beginning balance
$200,000
1st
After 1st payment
2nd
After 2nd payment
3rd
After 3rd payment
4th
Part B: Select the column that represents the financial statement where the line item will appear. Then fill in the correct dollar amount.
Income Statement
Statement of Cash Flows
Balance Sheet
1
Interest expense for 2011
2
Mortgage payable at December 31,2011
3
Interest paid in 2011
4
Loan principal paid in 2011
5
Interest expense for 2012
6
Mortgage payable at December 31, 2012
7
Interest paid in 2012
8
Loan principal paid in 2012
45) B. Row, Inc. needed some long-term financing and arranged for a 10-year, $100,000, 7% mortgage loan on January 1, 2010. Annual payments of $14,238 will be made on December 31 each year. Round to the nearest dollar.
Part A: Show the effect on the accounting equation:
Shareholders’ equity
Assets
Liabilities
CC
Retained earnings
1.
Jan. 1, 2010, borrowed $100,000
2.
Dec. 31, 2010, made the first loan payment
3.
Dec. 31, 2011, made the second loan payment
Part B: For each item, write in the amount (even if $0) as of or for the Year Ended December 31, 2010 and 2011 in the column of one financial statement where each amount is found.
2010:
Amount
Financial
1.
Mortgage payable
2.
Interest expense
3.
Payment of loan principal
4.
Interest paid
2011:
Amount
Financial
5.
Mortgage payable
6.
Interest expense
46) Install, Inc. borrowed $80,000 by signing an 8% mortgage note on December 31, 2009. The annual interest rate is 8%, with semiannual payments of $4,042 made on June 30 and December 31 every year. Round to the nearest dollar.
Part A: Show the effect on the accounting equation:
Shareholders’ equity
Assets
Liabilities
CC
Retained earnings
1
Dec. 31, 2009
Shareholders’ equity
Assets
Liabilities
CC
Retained earnings
2
June 30, 2010
3
Dec. 31, 2010
Shareholders’ equity
Assets
Liabilities
CC
Retained earnings
4
June 30, 2011
5
Dec. 31, 2011
Part B: For each item, write in the amount (even if $0) as of or for the Year Ended December 31, 2009, 2010, and 2011 in the column of the one financial statement where each amount is found.
2009:
Amount
Financial
5.
Mortgage payable
6.
Interest expense
2010:
Amount
Financial
1.
Mortgage payable
2.
Interest expense
4.
Interest paid
2011:
Amount
Financial
5.
Mortgage payable
6.
Interest expense
