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Confused about the calculation of journal entry amounts, please guide and answer Current Attempt in Progress Crane Resort Corp. issued a 20-year, 7%, $ 187,000
Confused about the calculation of journal entry amounts, please guide and answer
Current Attempt in Progress Crane Resort Corp. issued a 20-year, 7%, $ 187,000 mortgage note payable to finance the construction of a new building on December 31, 2021. The terms provide for semi-annual instalment payments on June 30 and December 31. (a) Your Answer Correct Answer Prepare the journal entries to record the mortgage note payable and the first two instalment payments assuming the payment is a blended payment of $8,757. (Round answers to decimal places, e.g. 5,276. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation Issue of Note Dec. 31, 2021 Cash 187000 Mortgage Note Payable 187000 (To record issuance of note.) First Instalment Payment June 30, Mortgage Note Payable 2022 Interest Expense Cash (To record payment on note.) Second Instalment Payment Dec. 31, Mortgage Note Payable 2022 Interest Expense Cash (To record payment on note.)Step by Step Solution
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