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Question - Talkington Electronics issues a $353,700, 10%, 10-year mortgage note on December 31, 2013. 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 $28,382. Payments are due June 30 and December 31.
1. Prepare an installment payments schedule for the first 2 years.
2. Prepare the entries for (1) the loan and (2) the first two installment payments.
3. Show how the total mortgage liability should be reported on the balance sheet at December 31, 2014. ( Talkington Electronics balance sheet December 31, 2014).
Total fixed factory overhead - $450,000. Estimated production - 25,000 units (100% of capacity). Compute the total factory overhead cost variance
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