Jernigan Co. receives $300,000 when it issues a $300,000, 10%, mortgage note payable to finance the construction

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Jernigan Co. receives $300,000 when it issues a $300,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2014. The terms provide for semiannual installment payments of $25,000 on June 30 and December 31.

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Prepare the journal entries to record the mortgage loan and the first two installment payments.

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Accounting Principles

ISBN: 9781118566671

11th Edition

Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso

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Question Posted: Jan 30, 2014 02:03 AM

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Jernigan Co. receives $300,000 when it issues a $300,000, 10%, mortgage note payable to finance the construction

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2014 Issuance of Note Dec 31 Cash 300000 Mortgage Payable 300000 2015 First Instal...View the full answer

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