[alex564]

Hey, I got this problem in accounting that has to do with long term liabilities. I created a complete payment schedule, and tried 2 different versions of answers, this is what I thought was the closest, but apparently it is wrong, could someone help out with this.

Problem:

Fowler purchased a new piece of equipment to be used in its new facility. The $550,000 piece of equipment was purchased with a $50,000 down payment and with cash received through the issuance of a $500,000, 8%, 4-year mortgage note payable issued on October 1, 2007. The terms provide for quarterly installment payments of $36,825 on December 31, March 31, June 30, and September 30.

(Round all amounts to 0 decimal places. For multiple debit/credit entries, list accounts in order of magnitude.)
__________________________________________________ ________________________
Prepare an installment payments schedule for the first five payments of the notes payable. Fill in the following amounts for each quarter.

Qtr. One cash payment $ 36825
Qtr. Two interest expense $ 19,327
Qtr. Three reduction of principal $ 18,918
Qtr. Four principal balance $ 427,804
Qtr. Five interest expense $ 17,112


Prepare the necessary journal entry related to the notes payable for December 31, 2007.

Dec. 31 Mortgage Notes Payable 26825
Interest Expense 10000
Cash 36825
__________________________________________________ ________________
Show balance sheet presentation for these obligations for December 31, 2007.

Current liabilities:
Current portion of 8% mortgage notes payable $ 112773

Long-term liabilities:
Mortgage notes payable, 8% due in 2011 and secured by plant assets $ 660,000

[alex564]

Never Mind this question, I solved it