I am stuck on a homework problem for accounting. I have some of the answers, but there are a few spots I am really stuck on. The numbers listed below I know are correct. I just need help with the blank spots..

On June 30, Rioux Management Company purchased land for $720,000 and a building for $1,080,000, paying $900,000 cash and issuing a 9% note for the balance, secured by a mortgage on the property. The terms of the note provide for 20 semiannual payments of $45,000 on the principal plus the interest accrued from the date of the preceding payment.

For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".

Building 1080000
Land 720000
Notes Payable 900000
Cash 900000

First installment
Note Payable 45000
Interest Expesnse ?
Cash ?

Second Installment
Notes Payable 45000
Interest Expense ?
Cash ?

Thank you for your help

So the instalments are six monthly what's the problem?the principal reduces with each instalment

My problem is I can't figure out how to calculate the interest expense for both of those.. some pointers would be helpful.. I can do the math, just need a little help.

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Originally Posted by girrks4eva

My problem is I can't figure out how to calculate the interest expense for both of those.. some pointers would be helpful.. I can do the math, just need a little help.

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If your math's this poor why are you doing accounting? You had better do remedial math.

first one; 900,000*9%/2 = or the days method; 900,000 * 9%*?? /365=, now you do the rest and show us your calculations