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21) On January 1, 2015, Bratios Company purchased equipment and signed a 6-year mortgage note for $80,000 at 15%. The note will be paid in equal annual installments of $21,139, beginning January 1, 2016. On January 1, 2016, the journal entry to record the first installment payment will include a:

A) debit to Mortgage Payable for $21,139.

B) debit to Interest Expense for $12,000.

C) credit to Cash for $9,139.

D) credit to Mortgage Payable for $80,000.

22) On January 1, 2015, Bratios Company purchases equipment and signs a 6-year mortgage note for $80,000 at 15%. The note will be paid in equal annual installments of $21,139, beginning January 1, 2016. Calculate the balance of the Mortgage Payable account after the payment of the first installment.

A) $12,000

B) $58,861

C) $70,861

D) $60,351

23) On January 1, 2015, Bratios Company purchases equipment and signs a 6-year mortgage note for $80,000 at 15%. The note will be paid in equal annual installments of $21,139, beginning January 1, 2016. Calculate the portion of interest expense paid on the third installment.

A) $21,139

B) $9,053

C) $12,000

D) $70,861

24) On January 1, 2015, Bratios Company purchases equipment and signs a 6-year mortgage note for $80,000 at 15%. The note will be paid in equal annual installments of $21,139, beginning January 1, 2016. Calculate the portion of principal amount paid on the third installment.

A) $12,086

B) $12,000

C) $21,139

D) $9,503

25) On May 1, 2015, Vinnie Services issued a long-term notes payable for $35,000. It is payable over a 5-year term in $7,000 annual principal payments plus interest, on May 1 of each year beginning on May 1, 2016. Provide the initial journal entry for the issuance of the note.

26) In order to expand business, the management of Vereos Inc. decided to issue long-term notes payable for $50,000. The instrument carries interest at the rate of 12% with 10 equal yearly installments, beginning in one year. What will be the journal entry at the inception?

27) In order to expand business, the management of Vereos Inc. decided to issue Long-term notes payable for $50,000. The note will be paid over ten years with payments of $5,000 plus 12% interest. Provide the journal entry needed after 1 year for the first installment payment.

28) On January 1, 2015, Paramount Inc. issued long-term notes payable for $50,000. The note will be paid over ten years with payments of $5,000 plus 12% interest due each January 1, beginning January 1, 2016. Prepare the amortization schedule for the first three payments.

29) On April 1, 2015, Ardoos Products borrowed $100,000 on a 15%, 10-year note with annual installment payments of $10,000 plus interest due on April 1 of each succeeding year. Provide the first journal entry for the issuance of the note.

30) On April 1, 2015, Nurix Manufacturers purchases equipment for $100,000, paying $30,000 in cash and signing a 10-year mortgage for $70,000 taken out at 8%. Prepare the journal entry to record the acquisition of the equipment.

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