Issued a $320,000, 10-year, 9% mortgage payable for land with an existing store building. Mortgage payments of
$4,000 are due on the first day of each month, beginning
November 1. The assets had the following market values: Land, $140,000; Building, $180,000
Oct. 1: Issued a one-year 15% note payable for $13,200 for store fixtures. The principal and interest are due
October 1, 2019.
Record adjusting entries for the three month period ended December 31 ,2018.
(Record debits first, then credits. Exclude explanations from any journal entries.)
4.
Record adjusting entries for the three month period ended December 3 2018:
a.
Depreciation on the Building, straight-line, 40
years, no residual value.
b.
Depreciation on Store Fixtures, straight-line, 20
years, no residual value.
c.
Accrued interest expense on the note payable for the store fixtures.
d.
Accrued interest expense on the mortgage payable.
e.
Accrued income tax expense of $35,000