**Oriole Company Mortgage Loan and Installment Payments Journal Entries**Oriole Company borrowed $790,000 on December 31, 2019, through a 9% mortgage note payable. The terms specify annual installment payments of $123,098, due on December 31.### Journal Entries#### December 31, 2019- **Cash**: Debit $790,000 - **Mortgage Payable**: Credit $790,000#### January 1, 2020- **Interest Expense**: Debit $71,100- **Mortgage Payable**: Debit $51,998- **Cash**: Credit $123,098#### January 1, 2021- **Interest Expense**: Debit $66,420 - **Mortgage Payable**: Debit $56,678- **Cash**: Credit $123,098**Instructions**: Prepare the journal entries to record the mortgage loan and the first two installment payments. Round answers to whole numbers. Credit account titles are automatically indented when the amount is entered. Record journal entries in the order presented. List all debit entries before credit entries. (b)Your answer is incorrect.Indicate the amount of mortgage note payable to be reported as a current liability and as a long-term liability at December 31, 2021. (Round answers to 0 decimal places, e.g. 15,250.)- Current liability: $63,320- Long-term liability: $674,682

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Answered: Oriole Company borrowed $790,000 on…

Oriole Company borrowed $790,000 on December 31, 2019, by issuing an $790,000, 9% mortgage note payable. The terms call for annual installment payments of $123,098 on December 31. (a)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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