Installment Term Loan On December 31, James, Inc., borrowed $500,000 on an eight percent, ten-year mortgage note payable. The note is to be repaid in equal quarterly installments of $18,278 (beginning March 31). Prepare journal entries to reflect (a) the issuance of the mortgage note payable, (b) the payment of the first installment on March 31 and (c) the payment of the second installment on June 30. Round amounts to the nearest dollar. Date a.) General Journal Description Debit Dec.31 Cash b.) Mortgage Note Payable Borrowed a mortgage note payable. Mar.31 Interest Expense Credit 500,000 $ 0 500,000 7,500 x 0 Mortgage Note Payable 9,214 x Cash 0 16,714 x To record quarterly payment. c.) Jun.30 Interest Expense 7,362 x 0 Mortgage Note Payable 9,352 x 0 Cash To record quarterly payment. 16,714 x Check