Total Payments $378,542.00
Actual Payment on loan $260,000.00
Interest Expenses $118,542.00
<u>Explanation</u>
Date General Journal Debit credit
1-Jan-18
Office $316,000
Cash $56,000
Mortgage Payable $260,000
(To record buying office)
2. Amortization Schedule:
Date Cash Paid interest expense Decrease in Carrying
value value
1/1/2018 0 0 0 260000
1/31/2018 3154.52 1733.33 1421.19 258578.81
2/28/2018 3154.52 1723.86 1430.66 257148.15
Date General Journal Debit Credit
1-Jan-18
Mortgage Payable $1,421.19
Interest expenses $1,733.33
Cash $3,154.52
(To record first month payments)
Interest Expenses Reducing the carrying value
First Payment $1,733.33 $1,421.19
4. Total Payments $378,542.00
Actual Payment on loan $260,000.00
Interest Expenses $118,542.00
