Question

In: Accounting

Overall Instructions: Prepare the report in good form as if you were submitting it to the...

Overall Instructions:

Prepare the report in good form as if you were submitting it to the financial vice-president of the company. It should be neat, well organized, and easy to follow. The standard is that anyone with accounting knowledge should be able to pick up your paper and quickly see what it accomplishes.

The spreadsheet should be programmed to make all calculations. For revisions, you should need only to type in the new information. Specific rules include:

Type each item of information only once.

Never embed information in formulas.

All information and solutions should be clearly labeled on excel.

Insole Vent Company purchased a building on January 1, 2026, paying $200,000 down and signing a mortgage note for an additional $3,400,000. The mortgage will be paid off with semi-annual payments (June 30 and December 31) over a period of 10 years. The mortgage rate is 4.5%.

Required:

Prepare the mortgage amortization schedule for the 10 years of this note.

Prepare the journal entries for the date of the sale and for the first two payments.

In a separate tab, repeat part A assuming the mortgage rate is 5%.

In a separate tab, repeat part A assuming the down payment of $500,000 and a mortgage of $5,000,000.

Solutions

Expert Solution

The formula to Caluclate EMI is as follows: P*R*((1+R)^N/((1+R)^N-1)

Where, P = Principal, R= Rate per period, N = Number of Monthly Installments

which in this case is P = $34,00,000, R = 4.5%/2, N= 20

Hence Putting this in the formulae = (3400000*4.5%/2*((1+4.5%/2)^20)/((1+4.5%/2)^20-1))

The EMI will come as = $212983.04.

The Mortgage amortization schedule has been attached:

The Journal Entries would be as follows -

For Purhase

1/1/2026 Building A/c Dr. $36,00,000

To Mortgage A/c $36,00,000

(Being Building Purchased on Mortgage)

MOrtgage A/c Dr. $2,00,000

To bank A/c $2,00,000

(Being Down payment made)

6/30/2026 Mortgage A/c Dr. $1,36,483.04

Interest A/c Dr. $76,500

To Bank A/c $2,12,983.04

(Being !st half yearly EMI paid)

12/31/2026 Mortgage A/c Dr. $1,39,553.91

Interest A/c Dr. $73,429.13

To Bank A/c $2,12,983.04

(Being 2nd Half-yearly EMI paid)

All the other Mortgage Amortisation schedules are attached.


Related Solutions

Overall Instructions: Prepare the report in good form as if you were submitting it to the...
Overall Instructions: Prepare the report in good form as if you were submitting it to the financial vice-president of the company. It should be neat, well organized, and easy to follow. The standard is that anyone with accounting knowledge should be able to pick up your paper and quickly see what it accomplishes. The spreadsheet should be programmed to make all calculations. For revisions, you should need only to type in the new information. Specific rules include: Type each item...
Overall Instructions: Prepare the report in good form as if you were submitting it to the...
Overall Instructions: Prepare the report in good form as if you were submitting it to the financial vice-president of the company. It should be neat, well organized, and easy to follow. The standard is that anyone with accounting knowledge should be able to pick up your paper and quickly see what it accomplishes. The spreadsheet should be programmed to make all calculations. For revisions, you should need only to type in the new information. Specific rules include: Type each item...
Instructions Prepare a classified balance sheet in good form as of December 31, 2020. (Not all...
Instructions Prepare a classified balance sheet in good form as of December 31, 2020. (Not all items listed are needed to complete this problem.) Upload your completed template when you are finished. Bonds payable(due 2024) $1,443 Accumulated depreciation-equipment $3,655 Prepaid insurance 880 Accounts payable 1,444 Equipment 11,500 Notes payable (due 2025) 368 Long-term investments 764 N. Richman, Capital 15,563 Short-term investments 3,690 Accounts receivable 2,696 Notes payable (due 2021) 981 Inventory 1,756 Cash 3,168 Consulting revenues 17,500 Salaries expense 7,225...
In the Marketing Project Report, each of you will be submitting a project report (individually) on...
In the Marketing Project Report, each of you will be submitting a project report (individually) on a brand of your choice (E.g. Apple, Pfizer, Unilever, Coke, BMW, Nike, IBM, Cisco, Harley Davidson, KFC, McDonald's, British Airways, Gucci, Toyota, Rolls Royce, Tim Horton's). What you need to write in the report? Here is what your report will cover, written by you in your own words (no copy and paste, strictly your own creative and professional writing):- Brand: Information on brand you...
prepare a trial balance in good form
The following accounts are taken from the ledger of chillin company at December 31,2014 200 Notes payable R$20,000                            101 Cash          R$6,000 311 Share capital - ordinary 25,000                  126  Supplies      5,000 157 Equipment - 76,000                                    729  Rent...
1. a) If you were a consulting engineer and were submitting Turnkey tender on behalf of...
1. a) If you were a consulting engineer and were submitting Turnkey tender on behalf of a Turnkey Contractor, would you consider a conflict of interest between the role of a consulting engineer and contractor? Enlarge on the ethics of this subject. b) It is clear to you that an Engineer engaged in a particular project (implement at the taxpayer’s account) is not maintaining professional standards, i.e. professional competence and integrity are lacking. What would be your reaction? Will you...
1. If you were a consulting engineer and were submitting Turnkey tender on behalf of a...
1. If you were a consulting engineer and were submitting Turnkey tender on behalf of a Turnkey Contractor, would you consider a conflict of interest between the role of a consulting engineer and contractor? Enlarge on the ethics of this subject. 2. It is clear to you that an Engineer engaged in a particular project (implement at the taxpayer’s account) is not maintaining professional standards, i.e. professional competence and integrity are lacking. What would be your reaction? Will you report...
2. C. Prepare a balance sheet in report form as of December 31, Year 1. You...
2. C. Prepare a balance sheet in report form as of December 31, Year 1. You are not required to present the details of Preferred and Common Stock (i.e., number of shares authorized, issued and outstanding). • Refer to the Chart of Accounts for exact wording of account titles. • Refer to the Labels and Amount Descriptions for exact wording of text entries. • “Less” , “Deduct”, “Add” and colons will appear automatically. • Available-for-sale investments should be reported as...
On the “CJE” worksheet, prepare the closing entries in good form for Grizzlies, Inc. at the...
On the “CJE” worksheet, prepare the closing entries in good form for Grizzlies, Inc. at the end of December 31, 2017. Again, all numbers should be cell references or formulas, not manually entered. Grizzlies, Inc. Worksheet For the Year Ended December 31, 2017 Unadjusted Adjusted Trial Balance Adjustments Trial Balance Income Stmt Balance Sheet Account Title Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Cash        36,000        36,000        36,000 Accounts Receivable      277,000      277,000     ...
On the “CJE” worksheet, prepare the closing entries in good form for Grizzlies, Inc. at the...
On the “CJE” worksheet, prepare the closing entries in good form for Grizzlies, Inc. at the end of December 31, 2017. Again, all numbers should be cell references or formulas, not manually entered. Grizzlies, Inc. Income Statement For the Month Ended December 31, 2017 Dr. Cr. Revenues Sales Revenue   $1,576,150.00 Cost of Goods Sold       975,000.00 Gross Profit         601,150.00 Operating Expenses Sales Salaries Expense    282,560.00 Office Salaries Expense    153,240.00 Miscellaneous Administrative Expense        5,650.00 Miscellaneous Selling Expense...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT