Fully Amortizing Installment Note Payable (Mortgage)

question 46

Essay

Fully amortizing installment note payable (mortgage)
On October 31,2018,Seldon Company incurs a 30-year $600,000 mortgage liability in conjunction with the purchase of a motel.This mortgage is payable in equal monthly installments of $6,485,which include interest computed at an annual rate of 12%.The first monthly payment is made on November 30,2018.This mortgage is fully amortizing over 360 months.
Complete the amortization table for the first two payments by entering the correct dollar amounts in the blank spaces provided.In addition,answer the questions that follow.
(a)With respect to this mortgage,Seldon's 2018 income statement includes interest expense of $________,and Seldon's balance sheet at December 31,2018 includes a total liability for this mortgage of $________.(Do not separate into current and long-term portions. )
(b)The aggregate monthly cash payments Seldon will make over the 30-year life of the mortgage amount to $________.
(c)Over the 30-year life of the mortgage,the amount Seldon will pay for interest amounts to $________.

Understand and apply the concept of significant influence in determining the need for equity accounting.

Recognize and calculate goodwill arising from the acquisition of an interest in an associate.

Comprehend the implications of revaluations by an associate on the investor's financial statements.

Understand the accounting treatments and disclosures required for investments in associates including the discontinuation of equity method due to incurred losses.

---

Definitions:

Agents of Socialization

Individuals, groups, and institutions that significantly influence the socialization process, including family, schools, peer groups, and media.

Technology

Technology encompasses the tools, machines, techniques, and sources of power that make work easier and more productive, playing a crucial role in advancing society and improving the quality of life.

Thomas Theorem

The assertion that situations defined as real are real in their consequences, emphasizing the subjective nature of social reality.

Dramaturgy

A sociological perspective that likens social life to a theatrical performance, where individuals manage impressions during their interactions.