Installment Term Loan

On December $31,$ Thomas, Inc. borrowed $$630,000$ on a $12\%,15-$year mortgage note payable. The note is to be repaid in equal semiannual installments of $$45,769($payable on June $30$ and December $31).$ Prepare journal entries to reflect $($a$)$ the issuance of the mortgage note payable, $($b$)$ the payment of the first installment on June $30,$ and $($c$)$ the payment of the second installment on December $31.$ Round amounts to the nearest dollar.

General Journal

Date Description Debit Credit

a$.)$

Dec$\mathrm{.}31$ Answer

Answer

Answer

Answer

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Borrowed a mortgage note payable.

b$.)$

Jun$\mathrm{.}30$ Interest Expense Answer

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To record semiannual payment.

c$.)$

Dec$\mathrm{.}31$ Answer

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Mortgage Note Payable Answer

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To record semiannual payment.