Moore Co. receives $110,000 when it issues a $110,000, 8%, mortgage note record mortgage note and payable to finance the construction of a building at December 31, 2007. The terms proinstallment payments. vide for semiannual installment payments of $7,041 on June 30 and December 31.

SO 10

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