| Acquisition of property on installment basis
Nov 1, 2007 I acquire one property in installment basis payable in 3 years or 36 months.
67, 000 purchase price
6700 Down payment
60, 300 Loan amount
8, 172 Total interest in 36 months
1902 Monthly payment for 36 months ( 1675 principal + 227 interest)
27/11/07 to 27/10/10 Loan term
1. What is the entry on Nov 1, 2007?
2. What is the entry on Nov 27, 2007?
3. What is the entry on Dec 31, 2007?
4. on Nov 1, 2007 is there a need for me to record the whole interest for 36 months which is 8, 172?
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