On December 31, 2018, Thomas, Inc., borrowed $700,000 on a 12%, 15-year mortgage note pay-able. The note is to be repaid in equal semiannual installments of $50,854 (payable on June 30 and December 31 ).

a. Prepare journal entries to record

(1) The issuance of the mortgage note payable

(2) The payment of the first installment on June 30, 2019

(3) The payment of the second installment on December 31, 2019. Round amounts to the nearest dollar.

b. Post the journal entries from part a to their respective T-accounts.

c. Record each of the transactions from part a in the financial statement effects template.