FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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### Journal Entry Preparation for Mortgage Loan

**Scenario:**
Cullumber Company borrowed $313,000 on January 1, 2022, by issuing a $313,000, 10% mortgage note payable. The terms call for annual installment payments of $54,000 on December 31.

#### Task (a):
Prepare the journal entries to record the mortgage loan and the first two installment payments.

**Instructions:**
- Credit account titles are automatically indented when the amount is entered. Do not indent manually.
- Record journal entries in the order presented in the problem.

#### Journal Entry Table:

| Date       | Account Titles and Explanation | Debit  | Credit |
|------------|--------------------------------|--------|--------|
| (Dropdown) |                                |        |        |
| (Dropdown) |                                |        |        |
| (Dropdown) |                                |        |        |
| (Dropdown) |                                |        |        |
| (Dropdown) |                                |        |        |
| (Dropdown) |                                |        |        |

This exercise is designed to help students practice recording financial transactions related to mortgage loans, understanding interest computations, and how installment payments affect the accounting ledger over time.
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Transcribed Image Text:### Journal Entry Preparation for Mortgage Loan **Scenario:** Cullumber Company borrowed $313,000 on January 1, 2022, by issuing a $313,000, 10% mortgage note payable. The terms call for annual installment payments of $54,000 on December 31. #### Task (a): Prepare the journal entries to record the mortgage loan and the first two installment payments. **Instructions:** - Credit account titles are automatically indented when the amount is entered. Do not indent manually. - Record journal entries in the order presented in the problem. #### Journal Entry Table: | Date | Account Titles and Explanation | Debit | Credit | |------------|--------------------------------|--------|--------| | (Dropdown) | | | | | (Dropdown) | | | | | (Dropdown) | | | | | (Dropdown) | | | | | (Dropdown) | | | | | (Dropdown) | | | | This exercise is designed to help students practice recording financial transactions related to mortgage loans, understanding interest computations, and how installment payments affect the accounting ledger over time.
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