Question

Current Attempt in Progress Matrix Consulting Agency signed a 10-year, 4.50%, $400,000 mortgage on June 30, 2021, to help finance a new office building. The mortgage terms provide for semi-annual payments of $25,057. Payments are due on December 31 and June 30. The company's year end is June 30. (a) Prepare an instalment payment schedule for the first two years. (Round answers to the nearest whole dollar, e.g. 5,275.) Semi- annual Cash Payment Interest Expense Reduction of Principal Interest Period June 30, 2021 Dec. 31, 2021 June 30, 2022 Dec. 31, 2022 June 30, 2023 4 $ 25057 25057 25057 25057 $ JOU $ Prin Bal Record the receipt of the mortgage loan on June 30, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit June 30

Answer 1

Instalment payment schedule for the first two years:

Semi-Annual Cash Payment Interest Expense Reduction of Principal Interest Period June 30, 2021 $ 25,057 $ 3,600 $ 21,457 Dec. 31, 2021 $ 25,057 $ 18,127 $ 7,930 $ 16,327 June 30, 2022 $ 25,057 $ 16,327 $ 9,731 $ 14,596 Dec. 31, 2022 $ 25,057 $ 14,596 $ 11,461 $ 12,135 June 30, 2023 $ 25,057 $ 12,135 $ 13,922 $ 9,213

Record the receipt of the mortgage loan on June 30, 2021:

Date Account Titles and Explanation Debit Credit June 30, 2021 Cash $ 400,000 Mortgage Payable $ 400,000

Step-by-step explanation: