Trawler Company borrowed ($ 500,000) on December 31,2025 , by issuing a ($ 500,000,7 %) mortgage note

Question:

Trawler Company borrowed $\$ 500,000$ on December 31,2025 , by issuing a $\$ 500,000,7 \%$ mortgage note payable. The terms call for annual installment payments of $\$ 80,000$ on December 31 .

Prepare entries to record mortgage note and installment payments.

Instructions

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

b. Indicate the amount of mortgage note payable to be reported as a current liability and as a longterm liability at December 31, 2026.

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Financial Accounting Tools For Business Decision Making

ISBN: 9781119791089

10th Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Jill E. Mitchell

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Question Posted: Feb 26, 2024 04:00 AM

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Trawler Company borrowed ($ 500,000) on December 31,2025 , by issuing a ($ 500,000,7 %) mortgage note

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a Cash Mortgage Payable Interest Expense 500000 x 7 Mort...View the full answer

Financial Accounting Tools For Business Decision Making

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