On July 31, 2020, Able Co. has a $500,000 15-year mortgage outstanding. Over the next year the company will make 12 monthly payments of $5,000 representing $33,500 of interest and $26,500 of principal repayment. Which of the following best represents how the mortgage will be reported on the July 31, 2020 statement of financial position?

Question

On July 31, 2020, Able Co. has a $500,000 15-year mortgage outstanding. Over the next year the company will make 12 monthly payments of $5,000 representing $33,500 of interest and $26,500 of principal repayment. Which of the following best represents how the mortgage will be reported on the July 31, 2020 statement of financial position? On July 31, 2020, Able Co. has a $500,000 15-year mortgage outstanding. Over the next year the company will make 12 monthly payments of $5,000 representing $33,500 of interest and $26,500 of principal repayment. Which of the following best represents how the mortgage will be reported on the July 31, 2020 statement of financial position?

Quizplus · Accepted Answer

The Answer of On July 31, 2020, Able Co. has a $500,000 15-year mortgage outstanding. Over the next year the company will make 12 monthly payments of $5,000 representing $33,500 of interest and $26,500 of principal repayment. Which of the following best represents how the mortgage will be reported on the July 31, 2020 statement of financial position?