Werstirener Brewing Ltd. issued a $600,000, five-year, 6 percent mortgage note payable on December 31, 2020, to help finance a new distribution centre. The terms of the mortgage provide for semi annual blended payments of $70,338 due June 30 and December 31 of each year.

Required

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, 2020.

3. Report the mortgage payable on the December 31, 2020, balance sheet. Use the principal reduction when calculating the current portion.

4. Journalize the first two instalment payments on June 30, 2021, and December 31, 2021.