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.
Definitions:
Variable Cost Per Unit
The cost that varies with each unit of production or service provided.
Net 30 Credit Policy
A payment term indicating that the payment for goods or services is due 30 days after the invoice date, often used in business-to-business transactions.
Monthly Interest Rate
The interest rate applied to a loan or investment for one month, often used to calculate the monthly interest payments or earnings.
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