Question

Company purchased a building and land with a fair market value of $ 575 comma 000 ​(building, $ 350 comma 000 and​ land, $ 225 comma 000​) on January​ 1, 2018. Kahl signed a 25​-year, 15​% mortgage payable. Kahl will make monthly payments of $ 7 comma 364.78. Round to two decimal places. Explanations are not required for journal entries.

Answer 1

Answer:

1  

Db Cash_____________________ 47.607,04  

Cr Mortage payable__________________________47.607,04

2

Db Building____________________350.000

Db Land_______________________225.000

Cr Cash___________________________________575.000

Explanation:

Purchase 575000  

Buildings 350000  

Land         225000  

 

Kahl  

575000  

Interest 15%  

Monthly Payments 7364,78  

 

 

1  

Cash_____________________ 47.607,04  

Mortage payable_____________________________  47.607,04

   

PVOrdinary Annuity​=C×[i1−(1+i)−n​]​/i  

 

C=cash flow per periodi 7364,78  

i=interest rate 15%  

n=number of payments​ 25  

 

 

PVOrdinary Annuity​=7364,78×[i1−(1+15%)−25]​/15%  

PVOrdinary Annuity​=47607,03