Explain the remainder on a mortgage note


Please help me figure out the problems below:

1. On December 2, 2013, Leggs purchased land and building for $380,000 (the land was appraised at $80,000). The company paid 20% of the purchase price in cash with the remainder on a mortgage note.

2. Record depreciation for the Buildings account. The depreciation on the buildings owned prior to December is $2,500 per month. The building purchased December 2nd has a salvage value of $30,000 and an estimated life of 40 years.

3. Depreciation for office and equipment owned at the beginning of the month is $6,250.

4. On December 2, 2013, Leggs purchased an automobile for $60,000 paying $20,000 in cash with the remainder on a 6 month 8% note.

5. Record depreciation for the Automobiles account. The depreciation on the automobiles owned prior to December is $1,000 per month. The automobile purchased December 2nd has a salvage value of $6,000 and an estimated life of 4 years.

6. Record accrued interest of $2,550 on the mortgage note.

7. Record accrued interest on the note in number 5 above. Round to the nearest dollar.

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Accounting Basics: Explain the remainder on a mortgage note
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