A business receipt of a $130,000 building, with a $60,000 mortgage payable, and issuance of $70,000...

A business receipt of a $130,000 building, with a $60,000 mortgage payable, and issuance of $70,000 of common stock will

Expert Solution

$130,000 worth of building is purchased with the help of $60,000 mortgage payable and $70,000 worth of common stock.

It increases Stockholder's equity by $70,000.

On asset side Building worth $130,000 is presented and on liabilities side Mortgage payable $60,000. and balance is stockholder's equity $70,000.

ekkarill92 answered 3 years ago

Journalize the mortgage payable issuance on January 1, 2018.

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Question: What is a mortgage payable?

Question: What is a mortgage payable? How mortgage payable is calculated?

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