FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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**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.
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Transcribed Image Text:**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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Transcribed Image Text:(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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