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1 July, 09:23

Roxy Inc. issues a $1,500,000, 10%, 10-year mortgage note on December 31, 2018, to obtain financing for a new building. The terms provide for annual installment payments of $244,118. Prepare the entry to record the mortgage loan on December 31, 2018, and the first installment payment on December 31, 2019.

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  1. 1 July, 11:28
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    Mortgage loan

    Dr. CR

    Dec 2018 Dec 2018

    Bal cld $1500000 Bank $150000

    Dec 2019. Dec 2019

    Bank $244118 Bal b/f 1500000

    Bal c/d $1405882 Interest $150000

    Bank

    Dr. CR

    Dec 2018 Dec 2018

    1oan$1500000 Bal c/d $1500000

    Dec 2019. Dec 2019

    Bal b/f $ 1500000 Loan $244,118

    Bal c/d $1255882

    Profit or loss account

    Dr. Cr

    Dec 2019

    Loan interest $150,000
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