FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Crane Resort Corp. issued a 20-year, 4%, $298,000 mortgage note payable to finance the construction of a new building on December 31, 2021. The terms provide for semi-annual instalment payments on June 30 and December 31.
a) Prepare the
|
Date |
Account Titles and Explanation |
Debit |
Credit |
| Issue of Note | |||
|
Dec. 31, 2021 |
|||
| (To record issuance of note.) | |||
| First Instalment Payment | |||
|
June 30, 2022 |
|||
| (To record payment on note.) | |||
| Second Instalment Payment | |||
|
Dec. 31, 2022 |
|||
| (To record payment on note.) |
b) Prepare the journal entries to record the mortgage note payable and the first two instalment payments assuming the payment is a blended payment of $10,894. (Round answers to 0 decimal places, e.g. 5,276. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
| Issue of Note | |||
|
Dec. 31, 2021 |
|||
| (To record issuance of note.) | |||
| First Instalment Payment | |||
|
June 30, 2022 |
|||
| (To record payment on note.) | |||
| Second Instalment Payment | |||
|
Dec. 31, 2022 |
|||
| (To record payment on note.) |
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