Domaine Wines Ltd. issued an $800,000, 5-year, 6 percent mortgage note payable on December 31, 2017, to help finance a new warehouse. The terms of the mortgage provide for semi-annual blended payments of $93,784 on June 30 and December 31 of each year.
1. Prepare a mortgage instalment payment schedule for the first two years of this mortgage. Round all amounts to the nearest whole dollar.
2. Record the issuance of the mortgage note payable on December 31, 2017.
3. Report interest payable and the mortgage note payable on the December 31, 2017, balance sheet.
4. Journalize the first two instalment payments on June 30, 2018, and December 31, 2018.