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

question 5

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.
$$\begin{array} { l l r } \text { AMORTIZATION SCHEDULE } & \text { Principal } & \$ 60,000.00 \\\text { (partial) } & \text { Rate } & 4.00 \% \\& \text { Payment } & \$ 980.00\end{array}$$
-At December 31,2013,after the December payment has been made,a new reclassification entry must be made to update the balance in the current portion of mortgage payable.Please provide that journal entry.
$$\begin{array} { | l | l | l | } \hline & & \\\hline & & \\\hline\end{array}$$

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Definitions:

Government Purchases

These refer to the total expenditures for goods and services by all levels of government, excluding transfer payments.

Expenditures

Payments or outlays of money to cover costs or expenses.

Salaries

Periodic payments made to employees, usually on a monthly or biweekly basis, in return for labor services performed.

Real GDP

The measure of a country's economic output adjusted for price changes, such as inflation or deflation, providing a more accurate reflection of the economy's size and how it's growing over time.