ProblemOne: On 1 Oct2017, WeezLtd entered into amortgage loan. The amount borrowed...ProblemOne: On 1 Oct2017, WeezLtd...

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Accounting

ProblemOne:
On 1 Oct2017, WeezLtd entered into amortgage loan. The amount borrowed was $458,800 at 12% per annum,with $40,000--part interest, part principal--repayable every sixmonths for ten years, beginning with the payment due 1 April 2018.The company has an annual accounting period ending 28February.
Required:
(1)Without narration,prepare a) the AJE on 28 Feb 2018, b) the journal entry for the$40,000 payment on 1 April 1, 2018, and c) the journal entry forthe second $40,000 payment on
1 October2018. Round to twodecimal places.
(2)Prepare the liabilitysection of the balance sheet as at 28 February2018.
(3)What is the totalinterest expense to be recognised over the ten year term of theloan?

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Q 1 a 1st October to 28th February is a gap of 5 months Interest expense Mortgage loan Rate 512 458800 12 512 22940 Adjusting Journal Entry AJE Date Account titles explanation Pref Debit Credit 2822018 Interest expense 22940 Interest payable 22940 To record matching interest expense See Answer

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In: AccountingProblemOne: On 1 Oct2017, WeezLtd entered into amortgage loan. The amount borrowed...ProblemOne: On 1 Oct2017, WeezLtd entered into amortgage loan. The amount borrowed was $458,800 at 12% per annum,with $40,000--part interest, part principal--repayable every sixmonths for ten years, beginning with the payment due 1 April 2018.The company has an annual accounting period ending 28February.Required:(1)Without narration,prepare a) the AJE on 28 Feb 2018, b) the journal entry for the$40,000 payment on 1 April 1, 2018, and c) the journal entry forthe second $40,000 payment on1 October2018. Round to twodecimal places.(2)Prepare the liabilitysection of the balance sheet as at 28 February2018.(3)What is the totalinterest expense to be recognised over the ten year term of theloan?