Exercise 10-24 Cullumber Company

  

Exercise 10-24
Cullumber Company receives $385,000when it issues a $385,000,8%, mortgage note
payable to finance the construction of a building at December 31, 2017. The terms
provide for annual installment payments of $44,979on December 31. Prepare the schedule using effective-interest method to amortize bond premium or
discount of Cullumber Company.(Round answers to 0 decimal places, e.g.
5,275.)
Annual
Interest
Period Cash
Payment Interest
Expens
e $ $ Issue date Reduction
of
Principal Principa
l
Balance $ $ 12/31/18
12/31/19 SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the journal entry to record the mortgage loan.(Round answers to 0
decimal places, e.g. 5,275. Credit account titles are automatically indented
when amount is entered. Do not indent manually.)
Date Account Titles and
Explanation Debi Credi
t
t Dec. 31, 2017 SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the journal entries to record the first two installment payments.?(Round
answers to 0 decimal places, e.g. 5,275. Credit account titles are
automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and
Explanation Debi Credi
t
t First Installment Payment
Dec. 31, 2018 Second Installment Payment
Dec. 31, 2019