Reference no: EM13842251

Fordyce Electronics issues a $400,000, 8%, 10-year mortgage note on December 31, 2007. The proceeds from the note are to be used in financing a new research laboratory. The terms of the note provide for semiannual installment payments, exclusive of real estate taxes and insurance, of $29,433. Payments are due June 30 and December 31.

Complete the installment payments schedule for the first 2 years. (Round answers to 0 decimal places, e.g. 125. Use rounded amounts for future calculations.

Semiannual	Cash Payment	Interest Expense	Reduction	Principal Balance
Interest Period			of Principal
Issue Date				$
1	$	$	$
2
3
4

Prepare the entries for (1) the loan and (2) the first two installment payments. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)

Date	Account / Description	Debit	Credit
2007
Dec. 31		$
			$
2008
30-Jun		$
		$
			$
Dec. 31		$
		$
			$

Show how the total mortgage liability should be reported on the balance sheet at December 31, 2008.

Current liabilities	12/31/2008
	$
Long-term liabilities
	$