Kellerman Company purchased a building and land with a fair market value of $550,000 (building, $425,000, and land, $125,000) on January 1, 2018. Kellerman signed a 20-year, 6% mortgage payable. Kellerman will make monthly payments of $3,940.37. Round to two decimal places. a. Journalize the mortgage payable issuance on January 1, 2018. Date Credit Debit 425000 15000 Non BUnding 550000 morigage payuple Prepare an amortization schedule for the first two payments. Principal Amortization
b. Carrying Value Cash Interest Date Payment Expense Borrow Date First Pmt Second Pmt
c. Journalize the first payment on January 31, 2018. Date Debit Credit
d. Journalize the second payment on February 28, 2018. Debit Credit Date

a,                       Journal Entry

Date        Account Title           Debit            Credit  

Jan 1           Building             $425,000  

                   Land                  $125,000  

                      Mortgage payable               $550,000

b.  Date                 Interest       Cash        Principal       Carrying

                             expense     payment  amortization   value

Borrow date                                                                    $550,000

First payment        $2,750       $3,940.37  $1,190.37    $548,809.63

Second payment   $2,744.05 $3,940.37  $1,196.32    $547,613.31

Working

First payment date

Interest expenses = 550,000 x 6% x 1/12 = 2,750

Cash payment = 3,940.37

Principal amortization = 3,940.37 - 2,750 = 1,190.37

Carrying value = 550,000 - 1,190.37 = 548,809.63

Second payment date

Interest expenses = 548,809.63 x 6% x 1/12 = 2,744.05

Cash payment = 3,940.37

Principal amortization = 3,940.37 - 2,744.05 = 1,196.32

Carrying value = 548,809.63 - 1,196.32 = 547,613.31

c.                                     Journal

Date        Account Title                Debit        Credit

Jan 31     Mortgage payable    $1,190.37  

               Interest expense       $2,750  

                     Cash                                      $ 3,940.37

d .                                     Journal

Date        Account Title                Debit          Credit

Feb 28    Mortgage payable      $1,196.32  

               Interest expense        $2,744.05

                     Cash                                         $3,940.37

answer; ///soft drinks mixed with alcohol will speed up the absorption rate;

the page presents four different kinds of threats that volcanoes pose and what to do before, during, and after an eruption.