Rouxdy Co. purchased a building that cost $450,000. They paid 10% and signed a 15 –...

Rouxdy Co. purchased a building that cost $450,000. They paid 10% and signed a 15 – year, 6%, mortgage payable for the remainder.

a. Journalize the issuance of the mortgage payable

b. Journalize the first monthly payment of $3,417.62

Expert Solution

No.	Account Titles	Debit	Credit
a.	Building	$450,000
	Cash ($450,000 x 10%)		$45,000
	Mortgage payable ($450000 - 45000)		$415,000

b.	Interest Expense (415000 x 6% x 1/12)	$2,075
	Mortgage payable ($3,417.62 - 2075)	$1,342.62
	Cash		$3,417.62

ekkarill92 answered 3 years ago

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