Carla Vista Resort Corp. issued a 20-year, 5%, $206,000 mortgage note payable to finance the construction...

Carla Vista Resort Corp. issued a 20-year, 5%, $206,000 mortgage note payable to finance the construction of a new building on December 31, 2021. The terms provide for semi-annual instalment payments on June 30 and December 31.

Prepare the journal entries to record the mortgage note payable and the first two instalment payments assuming the payment is a blended payment of $8,206. (Round answers to 0 decimal places, e.g. 5,276. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
	Issue of Note
Dec. 31, 2021

	(To record issuance of note.)
	First Instalment Payment
June 30, 2022


	(To record payment on note.)
	Second Instalment Payment
Dec. 31, 2022


	(To record payment on note.)

Expert Solution

Prepare the journal entries to record the mortgage note payable and the first two instalment payments assuming the payment is a blended payment of $8,206. (Round answers to 0 decimal places, e.g. 5,276. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
	Issue of Note
Dec. 31, 2021	Cash	206000
	Mortgage notes payable		206000
	(To record issuance of note.)
	First Instalment Payment
June 30, 2022	Interest expense (2060005%6/12)	5150
	Mortgage note payable	3056
	Cash		8206
	(To record payment on note.)
	Second Instalment Payment
Dec. 31, 2022	Interest expense (206000-3056)5%6/12	5074
	Mortgage note payable	3132
	Cash		8206
	(To record payment on note.)

ekkarill92 answered 2 years ago

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

Carla Vista Company has a December 31 fiscal year end. Selected information follows for Carla Vista...

Carla Vista Company has a December 31 fiscal year end. Selected information follows for Carla Vista Company for two independent situations as at December 31, 2021: 1. Carla Vista purchased a patent from Tamarisk Inc. for $411,000 on January 1, 2018. The patent expires on January 1, 2026. Carla Vista has been amortizing it over its legal life. During 2021, Carla Vista determined that the patent’s economic benefits would not last longer than six years from the date of acquisition....

Abbot Corp. issued a $270,000, three-year, zero-interest-bearing note payable to Athabasca Corp. for equipment on April...

Abbot Corp. issued a $270,000, three-year, zero-interest-bearing note payable to Athabasca Corp. for equipment on April 30, 2020. Abbot would normally pay interest at 6%. Abbot has a December 31 year-end and will repay the note with three equal yearly payments of $90,000. Abbot Corporation follows IFRS. Instructions Prepare the following journal entries for Abbot Corporation: Record the note December 31, 2020 interest accrual April 30, 2021 payment December 31, 2021 interest accrual April 30, 2022 payment As described in...

On January 1, 2017, Howard Corporation signed a $500,000, 6%, 5-year mortgage note that is payable...

On January 1, 2017, Howard Corporation signed a $500,000, 6%, 5-year mortgage note that is payable in annual installments of $118,698 every January 1. On December 31, 2017, the unpaid principal balance should be reported as A : a $118,698 current liability and a $381,302 long-term liability. B : a $500,000 current liability. C : a $88,698 current liability and a $411,301 long-term liability. D : a $500,000 long-term liability.

Sassafras Oil Inc. issued a note payable to Western Bank to finance a new project it...

Sassafras Oil Inc. issued a note payable to Western Bank to finance a new project it was developing. The note was for $300,000, issued at face value, with a 5-year term and interest payable at 6%. Sassafras’s project proved to not be technically feasible and caused the company to go into financial distress. The note is due today, October 8th, 2020 and Sassafras does not have the funds to repay the note or the interest. As a result, Western Bank...

Jernigan Co. receives €240,000 when it issues a €240,000, 6%, mortgage note payable to finance the...

Jernigan Co. receives €240,000 when it issues a €240,000, 6%, mortgage note payable to finance the construction of a building at December 31, 2020. The terms provide for annual instalment payments of €33,264 on December 31. instructions Prepare the journal entry to receive the funds on 31 December 2020. Jernigan has an annual accounting period ending on 30 April. Prepare the AJE required on 30 April 2021. Prepare the journal entry for the first instalment payment due on 31 December...

Ste. Anne Corp. obtained a 10-year, 5%, $129,000 mortgage loan to finance the purchase of a...

Ste. Anne Corp. obtained a 10-year, 5%, $129,000 mortgage loan to finance the purchase of a building at December 31, 2017. The terms provide for semi-annual instalment payments on June 30 and December 31. Record the first two instalment payments on June 30, 2018, and December 31, 2018, assuming the payment is (1) a fixed principal payment of $6,450 plus interest, and (2) a blended principal and interest payment of $8,275 (1) Fixed principal payment First Instalment June 30 Second...

Selected amounts from Carla Vista Company's trial balance of 12/31/20 appear below: 1. Accounts Payable $127,900...

Selected amounts from Carla Vista Company's trial balance of 12/31/20 appear below: 1. Accounts Payable $127,900 2. Accounts Receivable 149,000 3. Accumulated Depreciation—Equipment 213,300 4. Allowance for Doubtful Accounts 23,100 5. Bonds Payable 481,800 6. Cash 149,600 7. Common Stock 50,100 8. Equipment 873,000 9. Prepaid Insurance 31,000 10. Interest Expense 10,700 11. Inventory 304,800 12. Notes Payable (due 6/1/21) 185,700 13. Prepaid Rent 252,000 14. Retained Earnings 822,300 15. Salaries and Wages Expense 334,300 (All of the above accounts...

Practice Exercise 11-2 In 1990, Carla Vista Company completed the construction of a building at a...

Practice Exercise 11-2 In 1990, Carla Vista Company completed the construction of a building at a cost of $900,000 and first occupied it in January 1991. It was estimated that the building would have a useful life of 40 years and a salvage value of $27,000 at the end of that time. Early in 2001, an addition to the building was constructed at a cost of $225,000. At that time, it was estimated that the remaining life of the building...

Carla Vista Corp. agreed to lease property from Sunland Corp. effective January 1, 2020, for an...

Carla Vista Corp. agreed to lease property from Sunland Corp. effective January 1, 2020, for an annual payment of $25,592, beginning January 1, 2020. The property is made up of land with a fair value of $104,000 and a two-storey office building with a fair value of $170,000 and a useful life of 25 years with no residual value. The implicit interest rate is 9%, the lease term is 25 years, and title to the property is transferred to Carla...

Question