Question - On January 1, 2018, Stoops Entertainment purchases a building for $550,000, paying $110,000 down and borrowing the remaining $440,000, signing a 9%, 15-year mortgage. Installment payments of $4,462.77 are due at the end of each month, with the first payment due on January 31, 2018.
1. Record the purchase of the building on January 1, 2018.
2. Complete the first three rows of an amortization schedule.
Date Cash paid interest expense Decrease in carrying value Carrying value
1/1/18
01/31/18
02/28/18