Published on November 21, 2015
For more classes visit www.indigohelp.com P10-5A Fordyce Electronics issues a $400,000, 8%, 10-year mortgage note on December 31, 2007. The proceeds from the note are to be used in financing a new research laboratory. The terms of the note provide for semiannualinstallment payments, exclusive of real estate taxes and insurance, of $29,433. Payments are due June 30 and December 31. Complete the installment payments schedule for the first 2 years. (Round answers to 0 decimal places, e.g. 125. Use rounded amounts for future calculations.) Prepare the entries for (1) the loan and (2) the first two installment payments. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) Show how the total mortgage liability should be reported on the balance sheet at December 31, 2008.