Can you journalize this transaction?...
A company bought a land and a building and so it had the following transaction:
Dec 29... paid first installment on mortgage, $4000. This payment included interest of $1000, Bank Slip 4
2007-11-03 11:53:18 · 3 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
Debit mortgage for 3,000
Debit Interest expense 1,000
Credit Cash 4,000
This is assuming you didn't accrue 3 days worth because it wasn't the end of a month but just whatever month you paid it.
2007-11-03 11:57:02 · answer #1 · answered by shipwreck 7 · 0⤊ 1⤋
mortgage payable debit4000
interest expense debit1000
cash credit 5000
It's been 3 years since i took accounting in colege but i hope this helps
2007-11-03 19:19:41 · answer #2 · answered by Blue Coin 4 · 0⤊ 1⤋
dr mortgage payable 3,000.
dr interest expense 1,000.
cr cash 4,000.
The payment included the interest.
2007-11-03 19:34:14 · answer #3 · answered by fivestring46 4 · 1⤊ 0⤋