Cullumber Company receives $390,000 when it issues a $390,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2022. The terms provide for annual installment payments of $65,000 on December 31.

Prepare an amortization schedule of a mortgage note for two years.

Prepare the journal entry to record the mortgage loan. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Prepare the journal entries to record the first two installment payments. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)