Long-term note and mortgage

Assignment Help Accounting Basics
Reference no: EM13157803

A corporation borrowed money from a bank to build a building. The long-term note signed by the corporation is secured by a mortgage that pledges title to the building as security for the loan. The corporation is to pay the bank $80,000 each year for 10 years to repay the loan. Which of the following relationships can you expect to apply to the situation?

A. The amount of interest expense will remain constant over the 10-year period.

B. The balance of mortgage payable at a given balance sheet date will be reported as a long-term liability.

C. The amount of interest expense will decrease each period the loan is outstanding, while the portion of the annual payment applied to the loan principal will increase each period.

D. The balance of mortgage payable will remain a constant amount over the 10-year period.

Reference no: EM13157803

Questions Cloud

Statement regarding capitalization criteria : Which of the following is a correct statement of one of the capitalization criteria?
Local welfare agency that exercises consumer sovereignty : Imagine there is a local welfare agency that exercises consumer sovereignty by giving a specified amount of cash to a family to use for food. The family is eligible for the amount, but the agency does not follow up to make sure the family spent th..
State what is the van''t hoff factor for hx in water : What is the van't Hoff factor for HX in water? b) What is the molality of X1- ions in the solution?
What global social interests or responsibilities : What global social interests or responsibilities, if any, do we have as consumers to the losers of globalization? Discuss and justify your postings and responses with other students in our course.
Long-term note and mortgage : A corporation borrowed money from a bank to build a building. The long-term note signed by the corporation is secured by a mortgage that pledges title to the building as security for the loan. The corporation is to pay the bank $80,000 each year fo..
Contrast the three theories of helping : Compare and contrast the three theories of helping: social exchange, social norms, and the evolutionary theory. Define altruism and provide an example. Explain what is meant by "genuine altruism" and provide an example.
Axel will purchase the equipment that cost the least : Plan A: MRE offers to let Axel pay $55,000 each year for five years. The payments include interest at 12% per year. Plan B: Westernhome will let Axel make a single payment of $425,000 at the end of five years. This payment includes both principal and..
How much is the first payment : Suppose that, at the last minute, the company decides to purchase the same machinery at the same rate (8 percent), with payments decreasing by $7,500 each year. How much is the first payment?
Determine whether the mechanism is valid for reaction : Consider the following overall reaction which is experimentally observed to be second order in AB and zero order in C: AB + C ----> A + BC Determine whether the mechanism below is valid for this reaction.

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  What are the recognized gain or loss

Raymond exchanges a rental lake house with an adjusted basis of 200,000 and fair market value of 320,000 for a rental beach house with a fair market value of 290,000 and 30,000 cash what are the recognized gain or loss and the basis of the beach h..

  Which is not usually a factor in your decision

When making a short term investment decision which of the following is not usually a factor in your decision?

  Question regarding increased productivity

A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts.

  Segment margin for store

Assume that this proposal is adopted, and that as a result sales in Store Q increase by $40,000. The new segment margin for Store Q should be:

  What amount must niven expense as organizational costs

Niven Co., a developmental stage enterprise, incurred the following costs during its first year of operations:Legal fees for incorporation and other related matters $55,000Underwriters fees for initial stock offering 40,000Exploration costs and pu..

  Earn the minimum wage

With this system it is estimated that 120 cars per hour can be serviced. All workers earn the minimum wage. Use productivity arguments to recommend whether or not to change the current system.

  Use the straight line method

Question:  San Jose Company issued 5-year $200,000 face value bonds at 105 on January 1, 2012. The stated interest rate on these bonds is 9%. Use the straight line method to complete the amortization schedule given.

  Define difference between sales journal and accounts

Can you distinguish between accuracy of tests of gross accounts receivable and tests of the realizable value of receivables?

  Alternative audit procedures

A substantial number of hours was spent by Raleigh and Mincin in resolving relatively minor differences between the confirmation replies and the accounting records. Alternative audit procedures were used for supplier who did not respond to the con..

  Deductible loss after limitation 2013

Jarrett owns a mountain chalet that he purchased in 1999 for $175,000. This year, the home appraised at $300,000. Shortly after the appraisal, a blizzard hit the area in spring of the current year

  Determining the taxable income

Julie owns 100% and is an active participant in the rental real estate activity. What is Julies taxable income in 2010?

  What is the greatest shortcoming of this approach

Analysts often take a short cut in estimating a firm's cash from operations: they just add depreciation back to net income. What is the greatest shortcoming of this approach?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd