Exercise 15-10 Dreiling Company borrowed $300,000 on January 1, 2017, by issuing a $300,000, 5% mortgage note payable. The terms call for annual installment payments of $40,000 on December 31. Your answer is correct. Prepare the journal entries to record the mortgage loan and the rst two installment payments. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2017 Cash 300,000 Mortgage Payable 300,000 Dec. 31, 2017 Interest Expense Mortgage Payable 25,000 Cash 40,000 Dec. 31, 2018 Interest Expense 13.750 Mortgage Payable 26,250 1'! IN IN I' E' I' I 1|! IN IN I' I' I' I' l Dec. 31, 2018 Interest Expense 13,750 Mortgage Payable 26,250 V Cash 40,000 SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT x Your answer is incorrect. Try again. Indicate the amount of mortgage note payable to be reported as a current liability and as a long-term liability at December 31, 2017. (Round answers to 0 decimal places, e.g. 15,250.) x Current liability to 25,000 x Long-term liability 275,000