Accounting 2

hho9e_e11_14_eip_stud.xls

E11-14


Accounting, 9e
E11-14	Recording mortgage payable entries from an amortization schedule
LO 1 [10-15 minutes]
		Students please fill-in areas that are shaded
Student Name
Course Name
Student ID:
Date:
Kaiser Company’s partial amortization schedule follows:
Payment Number	Date	Payment	Interest Expense (Principal X 6% X 1/12)	Principal	Mortgage Balance
Loan	1/1/13				$ 500,000.00
1	1/31/13	3,597.30	2,500.00	1,097.30	498,902.70
2	2/28/13	3,597.30	2,494.51	1,102.79	497,799.91
3	3/31/13	3,597.30	2,489.00	1,108.30	496,691.61
4	4/30/13	3,597.30	2,483.46	1,113.84	495,577.77
5	5/31/13	3,597.30	2,477.89	1,119.41	494,458.36
6	6/30/13	3,597.30	2,472.29	1,125.01	493,333.35
7	7/31/13	3,597.30	2,466.67	1,130.63	492,202.72
8	8/31/13	3,597.30	2,461.01	1,136.29	491,066.43
9	9/30/13	3,597.30	2,455.33	1,141.97	489,924.46
10	10/31/13	3,597.30	2,449.62	1,147.68	488,776.78
11	11/30/13	3,597.30	2,443.88	1,153.42	487,623.36
12	12/31/13	3,597.30	2,438.12	1,159.18	486,464.18
	2013 totals	43,167.60	29,631.78	13,535.82
Requirements
1.	Journalize the note issuance and the reclassification of the current portion on
	January 1, 2013 (explanations are not required).
2.	What is the balance in Estimated warranty payable?
3.	Journalize the second payment on February 28, 2013 (do not round).
Test Your Knowledge
E11-14
Req. 1
Journal
DATE	ACCOUNTS AND EXPLANATIONS			DEBIT	CREDIT
2013
Jan 1
Jan 1
Req. 2
Journal
DATE	ACCOUNTS AND EXPLANATIONS			DEBIT	CREDIT
2013
Jan 31
Req. 3
Journal
DATE	ACCOUNTS AND EXPLANATIONS			DEBIT	CREDIT
2013
Feb 28

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