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JulsSmile [24]
3 years ago
12

Monty Corp. receives $180,000 when it issues a $180,000, 10%, mortgage note payable to finance the construction of a building at

December 31, 2019. The terms provide for annual installment payments of $30,000 on December 31. Prepare the journal entries to record the mortgage loan and the first two payments. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Business
1 answer:
ioda3 years ago
7 0

Answer:

December 31, 2019

Dr. Cash                       $180,000

Cr. Mortgage Payable $180,000

December 31, 2020

Dr. Mortgage Payable $12,000

Dr. Interest Expense   $18,000

Cr. Cash                       $30,000

December 31, 2021

Dr. Mortgage Payable $13,200

Dr. Interest Expense   $16,800

Cr. Cash                       $30,000

Explanation:

Mortgage Loan

Installment of Mortgage loan includes the interest expense and principal value. As Cash of $180,000 received, so we need to debit the cash with this value. On the other hand there is a liability arise from this event. A mortgage payable account will be credited because it has credit nature.

First Loan Payment

Installment Payment = $30,000

Interest portion of Installment = $180,000 x 10% = $18,000

Interest portion of Installment = $30,000 - $18,000 = $12,000

First Loan Payment

Installment Payment = $30,000

Interest portion of Installment = ($180,000-12,000) x 10% = $16,800

Interest portion of Installment = $30,000 - $16,800 = $13,200

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J. Morgan and M. Halsted are partners who share income and loss in a 3:1 ratio. After several unprofitable periods, the two part
Elina [12.6K]

Answer:

cash   110,000 debit

  land                   100,000 credit

  gain at disposal  10,000 credit

--to reocrd teh sale of land--

accounts payable 80,000 debit

               cash               80,000 credit

--to record the payment of liabilities--

gain at disposal 10,000 debit

                Morgan           7,500 credit

                Halsted          2,500 credit

--to distribute the gain from sale--

Morgan 22,500

Haslted    7,500

   Cash                30,000

--to liquidate the partnership--

Explanation:

ratio 3:1 (3+1=4)

Morgan  15000 share of 3/4 = 75%

Halsted   5000 share of 1/4 = 25%

there is gain of 10,000 in the sale distribute as follow

Morgan 10,000 x 75% =  7,500

Halsted 10,000 x 75% =   2,500

Now we close the account against cash

8 0
3 years ago
Franchise<br> Is what type of organization
DENIUS [597]

Answer:

Franchising is based on a marketing concept which can be adopted by an organization as a strategy for business expansion. Where implemented, a franchisor licenses its know-how, procedures, intellectual property, use of its business model, brand, and rights to sell its branded products and services to a franchisee.

5 0
3 years ago
Read 2 more answers
The owners of Old School Brand Authentic Antique Foods researched Civil War records to come up with recipes used for the old-fas
andreyandreev [35.5K]

Answer:

Product

Explanation:

Marketing mix involves four elements

a. product

b. price

c. place

d. promotion

The statement given indicates that the recipe of cookies focuses on the product element of marketing mix.

6 0
3 years ago
Mark and Rasheed are at the bookstore buying new calculators for the semester. Mark is willing to pay $75 and Rasheed is willing
Romashka [77]

Answer:

Mark's individual consumer surplus is $10.

Explanation:

Mark and Rasheed are at the bookstore buying new calculators for the semester.

Mark is willing to pay $75 and Rasheed is willing to pay $100 for a graphing calculator.

The price for a calculator at the bookstore is $65.

The consumer surplus is the difference between the maximum price that a consumer is willing to pay and the price he actually has to pay.

Mark's individual consumer surplus

= Price mark was willing to pay - Price he actually has to pay

= $75 - $65

= $10

4 0
3 years ago
Symbols such as Traveler's Financial Services umbrella are designed to help customers over come the _____ of services.
Anvisha [2.4K]

Answer:

D)  intangibility

Explanation:

Intangibility is a term that means it is not seen or even not touched. It only feels. Like in the case of intellectual properties like goodwill, copyrights, patents, etc we cant see them we only work on it.

So here in the given situation, the symbols like umbrella of traveler financial services would be designed for helping the customers so that it would be overcome the services intangibility

Therefore the correct option is D.

4 0
3 years ago
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