Proxy Inc. issues a $1,300,000, 10%, 10-year mortgage note on December 31, 2020, to obtain financing for a new building. The terms provide for annual installment payments of $211,569. Prepare the entry to record the mortgage loan on December 31, 2020, and the first installment payment on December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020               Dec. 31, 2021

Q: Campus Flights takes out a bank loan in the amount of $200,500 on March 1, 2019. The terms of the…

A: Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: On January 1, 2021, Julee Enterprises borrows $30,000 to purchase a new Toyota Highlander by…

A: Journal entry for the issuance of notes payable:- Date General Journal Debit Credit Jan 01,…

Q: Cullumber Electronics issues a $355,500, 3%, 10-year mortgage note on December 31, 2021. The…

A: Interest = Loan amount x rate of interest x no. of months in calendar year /12 months Loan Payment =…

Q: Cullumber Electronics issues a $355,500, 3%, 10-year mortgage note on December 31, 2021. The…

A: Interest = Loan amount x rate of interest x no. of months in calendar year /12 months Loan Payment =…

Q: Sunland Resort Corp. issued a 20-year, 6%, $274,000 mortgage note payable to finance the…

A: Journal entries shows the recording of transactions during an accounting year and every transaction…

Q: On December 31, 2020, Chase Bank has a 5-year loan renewable with a face value of $5,000,000 dated…

A: 5 year Loan               = $5000000 Accrued Interests       =   $500000 Total receivable…

Q: On November 1, 2021, Quantum Technology, a geothermal energy supplier, borrowed $16 million cash to…

A: 1.  Date Account Titles and Explanation Debit Credit November 1, 2021 Cash $16,000,000…

Q: On April 1, 2020, Rasheed Company assigns $400,000 of its accounts receivable to the Third National…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Assuming Valco Brothers Farm fulfills all the terms of the note, prepare the necessary journal…

A: Under Accrual Basis of accounting business transations are recorded as and when they occur. Here…

Q: Cucina Corporation signed a new installment note on January 1, 2021, and deposited the proceeds of…

A: Beginning Notes Payable Interest Expense Repaid Principal on Notes Payable Ending Notes Payable…

Q: On January 1, 2019, Brooks Inc, borrows $90,000 from a bank and signs a 5% installment note…

A: While making annual payment to bank, the annual payment consists of some portion of principal…

Q: On January 1, 2021, Gundy Enterprises purchases an office building for $261,000, paying $51,000 doWH…

A: Solution 3a: Journal Entries Date Particulars Debit Credit 31-Jan-21 Interest expense…

Q: Allen Inc. took out a 1-year, 8%, $100,000 loan on March 31, 2018. Interest is due upon maturity of…

A: Formula: Interest expense = Loan amount x Interest rate x Time period

Q: On January 12021Gundy Enterprises purchases an office building for $184,000, paying $44.000 down and…

A: A mortgage is a loan from the bank or the financial institution that helps the business to purchase…

Q: On February 10, 2021, after issuance of its financial statements for 2020, Crane Company entered…

A: Short term debt is the debt which matures within a period of an year. In simple words, the debt that…

Q: On January 1, 2021, Stoops Entertainment purchases a building for $550,000, paying $110,000 down and…

A: Solution 3a: Journal Entries Date Particulars Debit Credit 31-Jan-21 Interest expense…

Q: Engels On December 31, 2020, American Elm Inc., borrowed €746 000 on a 3%, 20-year mortgage note…

A: The following calculations are done for American Elm Incorporation.

Q: Pocotalk Electronics issued a $1,000,000, 5%, 10-ycar mortgage note on December 31, 2018. The…

A: 1. Date Cash Paid Interest Expense Principal Installment Balance of payable 31 Dec 18…

Q: Blossom Company receives $240,000 when it issues a $240,000, 10%, mortgage note payable to finance…

A: Amortization schedule of a mortgage note for two years: AnnualInterestPeriod CashPayment…

Q: Campus Flights takes out a bank loan in the amount of $200,500 on March 1, 2019. The terms of the…

A: “Since you have posted a question with multiple subparts, we will be solving the first three…

Q: On January 1, 2021, Gundy Enterprises purchases an office building for $261,000, paying $51,000 down…

A: Cash paid = $51,000 Note = $210,000 Purchase price of building = $261,000

Q: ABC Bank granted a loan to a borrower on Jan. 1, 2019. The interest on the loan is 10% payable…

A: Principal amount 8,000,000 Add: Direct origination cost 123,000 Less: Origination fee received…

Q: Safari Bank granted a loan to a borrower on Jan. 1, 2020. The interest on the loan is 8% payable…

A: Initial measurement of loan receivables on Jan 1, 2020 should be made as follows:   Amount…

Q: Larkspur, Inc. receives $260,400 when it issues a $260,400, 10% mortgage note payable to finance the…

A: Journal: Recording of a business transactions in a chronological order.

Q: The owner of Jewel Company had a loan from Metrobank amounting to ₱500,000. The bank requires the…

A: Accrued interest on loan ( from November 1, 2020 to December 31, 2020 ) = ₱500,000 x 12% x 212 =…

Q: On March 1, 2020 Inland corporation purchased a building by signing a $185,000 long term mortgage…

A: Mortgage is a value which is borrowed from the other sources like banks and this amount repaid later…

Q: Solid Bank loaned P5,000,000 to a borrower on January 1, 2018. The terms of the loan require…

A: As per amortized cost method, the financial instrument is measured at fair value which is  increased…

Q: Talkington Electronics issues a $400,000, 8%, 10‐year mortgage note on December 31, 2019. The…

A: The term mortgage note alludes to a promissory note that is gotten by a home loan, which vows the…

Q: Sunland Company borrowed $760,000 on December 31, 2019, by issuing an $760,000, 9% mortgage note…

A: Note payable refers to the agreement made between the parties to repay the sum at maturity with…

Q: Cucina Corporation signed a new installment note on January 1, 2021, and deposited the proceeds of…

A: The process of recording business transactions in the books of accounts for the first time is…

Q: To attract retailers to its shopping center, the Marketplace Mall will lend money to tenants under…

A: Solution:- Preparation of journal entries in the books of Marketplace Mall as follows-

Q: What is the carrying amount of the loan receivable on December 31, 2021? National Bank granted a…

A: The carrying amount of loan is calculated by preparing the amortization schedule and considering the…

Q: Blue Spruce Corp. issues an $880,000, 15%, 10-year mortgage note on December 31, 2020, to obtain…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: On January 1, 2021, Stoops Entertainment purchases a building for $580,000, paying $110,000 down and…

A: Req-1       Date General Journal Debit Credit         January 01, 2021 Buildings $5,80,000…

Q: On January 1, 2021, Stoops Entertainment purchases a building for $580,000, paying $110,000 down and…

A: Cash paid = $110,000 Notes payable = $470,000 Total purchase price = $580,000

Q: On January 1, 2021, Gundy Enterprises purchases an office building for $184,000, paying $44.000 down…

A: On January 1, 2021 Gundy Enterprises purchases an office building of $184000 Down payment = $44000…

Q: Pickeril Inc. issues a $600,000, 10%, 10-year mortgage note on December 31, 2010, to obtain…

A: Notes Payable:  A note payable is a liability in writing that promises to pay a specific amount of…

Q: Muffin Co. Issues an $800,000, 10%, 10-year mortgage note on December 31, 2019, to obtaln financing…

A: Loan Amount 800000 Emi 64194

Q: On January 1, 2Ox1, Bouncy House, Inc. obtains a $50,000, 6 year, 8% installment note for the latest…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: On June 18, 2020, Woods Co. received from one of its customers, Webb Co., a 90 day, 11%, $6,000 note…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Cullumber Co. receives $248,400 when it issues a $248,400, 10%, mortgage note payable to finance the…

A: Date Account Ttiles and Explanation Debit Credit Dec 31,2020 Cash $248,400…

Q: Sandhill Electronics issues a $388,500, 5%, 15-year mortgage note on December 31, 2019. The proceeds…

A: Formulas:

Q: Assuming the customer’s borrowing rate is 5%, prepare all journal entries for 2019 and 2020 under…

A: At first, we will find out the present value of the note payable.

Q: Cullumber Electronics issues a $355,500, 3%, 10-year mortgage note on December 31, 2021. The…

A: A mortgage note is a promissory note or document containing terms and conditions of the mortgage. It…

Q: Jem Riane Delos Reyes Bank granted a loan of P3,000,000 to a borrower on January 1, 2021. The terms…

A: given, loan amount = $3000,000 which is not paid for first two years.

Q: On January 1, 2021, Stoops Entertainment purchases a building for $550,000, paying $110,000 down and…

A: Given that, Cost of the building purchased = $550000 Down payment made = $110000 Notes payable…

Q: Allen Inc. took out a 1-year, 8%, $100,000 loan on March 31, 2018. Interest is due upon maturity of…

A: Formula: Interest expense = Loan Amount x Interest rate x Time period

Q: Hanschu Inc. issues an $800,000, 10%, 10-year mortgage note on December 31, 2020, to obtain…

A: Journal entry as at December 31,2020 is as follows:

Q: On April 1, 2020, MMM company issues a $105,000, three -month, zero-interest-bearing note to Al-Ahli…

A: A journal entry is done to record the transaction that took place in the books of accounts.

Q: Novak Corp. receives $375,600 when it issues a $375,600, 10% mortgage note payable to finance the…

A: Mortgage can be referred to as a source of long term financing which is used to finance purchase or…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.