Rouxdy Co. signed a 20 – year, 5%, $375,000 mortgage payable for the purchase of a...

Rouxdy Co. signed a 20 – year, 5%, $375,000 mortgage payable for the purchase of a building.

a. Journalize the issuance of the mortgage payable

b. Journalize the first monthly payment of $2,474.83

Expert Solution

Journal entry

Date	account and explanation	debit	credit
	Building	375000
	Mortgage notes payable		375000
	(To record purchase building)

	Mortgage notes payable	912.33
	Interest expense (3750005%1/12)	1562.50
	Cash		2474.83
	(To record first installment paid)

ekkarill92 answered 2 years ago

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