Question

On December 1st, 2022, AIF Inc. takes out a $100,000 mortgage note to purchase a new building. The interest rate on the mortgage is 9% per year and the required payments are $800 per month. The note has been outstanding for one month. What is the balance of the mortgage note payable on the December 31, 2022 Balance Sheet? HINT: The mortgage note will be decreased by the "Monthly Payment" less interest portion, i.e., "One Month's Interest Expense" 

          On December 1st, 2022, AIF Inc. takes out a $100,000 mortgage note to purchase a new building. The interest rate on the mortgage is 9% per year and the required payments are $800 per month. The note has been outstanding for one month. What is the balance of the mortgage note payable on the December 31, 2022 Balance Sheet? HINT: The mortgage note will be decreased by the "Monthly Payment" less interest portion, i.e., "One Month's Interest Expense"
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Horngren’s Cost Accounting
Horngren’s Cost Accounting
Srikant M. Datar, Madhav V. Rajan 16th Edition
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On December 1st, 2022, AIF Inc. takes out a $100,000 mortgage note to purchase a new building. The interest rate on the mortgage is 9% per year and the required payments are $800 per month. The note has been outstanding for one month. What is the balance of the mortgage note payable on the December 31, 2022 Balance Sheet? HINT: The mortgage note will be decreased by the "Monthly Payment" less interest portion, i.e., "One Month's Interest Expense"
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Transcript

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00:02 To determine the balance of to determine the balance of a crude interest payable crude interest payable account on december 31st of year 2 for this we need to calculate the interest from july 1st of year 2 december 31st of year 2 so the given information principal balance of the note the principal balance of the note is the rate is of 10 % trust and principal payment due on june 30th of each year so to calculate the crude interest we first need to determine the number of days between july 1st of year 2 and july and december 31st of year 2 assuming a 365 day year this give a 184 days the…
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