icediamek
Mar 16, 2013, 08:17 PM
The cost of the building is $120,000. The terms of the mortgage require $1,000 per month mortgage payments for the next 10 years. (Ignore mortgage interest)
Company A makes its mortgage payments each month on time. At the end of the year all 12 payments have been made on the mortgage liability.
On December 31, 2012, As Company A’s accountant, you prepare a “classified” balance sheet.
How would you reflect the building and the mortgage liability on the classified balance sheet?
Company A makes its mortgage payments each month on time. At the end of the year all 12 payments have been made on the mortgage liability.
On December 31, 2012, As Company A’s accountant, you prepare a “classified” balance sheet.
How would you reflect the building and the mortgage liability on the classified balance sheet?