On January 1, 2013, Thames Company Purchases Property and Signs

question 69

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.
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.

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Definitions:

Property Disposal

The act of getting rid of property, whether by sale, destruction, donation, or other means, especially in the context of public or corporate assets.

Making A Will

The legal process through which an individual specifies how their assets should be distributed after death.

Testator

A person who has made a will, especially one that is legally valid.

Incomplete Disposition

The failure to fully deal with or dispose of an asset or a legal matter.