On January 1,2013,Thames Company Purchases Property and Signs a 6-Year

question 160

Essay

On January 1,2013,Thames Company purchases property and signs a 6-year mortgage note for $60,000 at 4%.Please see the partial amortization schedule below.
$$\begin{array} { l l r } \text { AMORTIZATION SCHEDULE } & \text { Principal } & \$ 60,000.00 \\\text { (partial) } & \text { Rate } & 4.00 \% \\& \text { Payment } & \$ 980.00\end{array}$$
- On January 1,2013,Thames recorded the entire principal amount of $60,000 as mortgage payable.They would then record a second entry to reclassify the current portion.Please provide that entry.
$$\begin{array} { | l | l | l | } \hline \quad\quad& \quad&\quad \\\hline & & \\\hline\end{array}$$