Business, 07.06.2020 00:59 erbnichole
On January 1, 2021, Gundy Enterprises purchases an office building for $305,000, paying $55,000 down and borrowing the remaining $250,000, signing a 9%, 10-year mortgage. Installment payments of $3,166.89 are due at the end of each month, with the first payment due on January 31, 2021. Required: 1. Record the purchase of the building on January 1, 2021.2. Complete the first three rows of an amortization schedule.
3-a. Record the first monthly mortgage payment on January 31, 2021.
3-b. How much of the first payment goes to interest expense and how much goes to reducing the carrying value of the loan?
Answers: 2
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On January 1, 2021, Gundy Enterprises purchases an office building for $305,000, paying $55,000 down...
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