How do you work out installment payments on a mortgage loan? (Journal entries)?
Pickeril Inc. issues a $609,000, 10%, 10-year mortgage note on December 31, 2008, to obtain financing for a current building. The terms provide for semiannual installment payments of $48,867. Prepare the entry to record the mortgage loan on December 31, 2008, and the first installment donation.
I have done the following journal entries:
Dec. 31
Dr. Cash $609,000
Cr. Mortgage Notes Payable $609,000
June 30
Dr. Interest Expense $?
Dr. Mortgage Notes Payable $?
Cr. Cash $48,867
How do you multiply the interest expense and mortgage notes payable for the first installment payment?
Answers:
June 30
Dr. Interest Expense $30,450 ($609,000 x 10% x 6/12)
Dr. Mortgage Notes Payable $18,417
Cr. Cash $48,867
In adjectives, pls ask accounting questions under Other - Business & Finance, not Personal Finance.
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I have done the following journal entries:
Dec. 31
Dr. Cash $609,000
Cr. Mortgage Notes Payable $609,000
June 30
Dr. Interest Expense $?
Dr. Mortgage Notes Payable $?
Cr. Cash $48,867
How do you multiply the interest expense and mortgage notes payable for the first installment payment?
Answers:
June 30
Dr. Interest Expense $30,450 ($609,000 x 10% x 6/12)
Dr. Mortgage Notes Payable $18,417
Cr. Cash $48,867
In adjectives, pls ask accounting questions under Other - Business & Finance, not Personal Finance.
Related Questions:
Should Mortgage Loans be made to Illegal Aliens?
The Poison Mortgages that collapsed the American Banking system apparently were the ITIN Mortgage Loans. http://www.hipoteca.net/mortgages/refina… Loans, known as ITIN loans, are offered to bent immigrants that do not have a Social Security number. They can qualify for the loans by obtain...