Jernigan Co. receives 240,000 when it issues a 240,000, 6%, mortgage note payable to finance the construction of a building at December 31, 2020. The terms provide for annual instalment payments of 33,264 on December 31.

instructions

1. Prepare the journal entry to receive the funds on 31 December 2020.
2. Jernigan has an annual accounting period ending on 30 April. Prepare the AJE required on 30 April 2021.
3. Prepare the journal entry for the first instalment payment due on 31 December 2021. Recall that each instalment payment is part interest, part principal.
4. Prepare the AJE required on 30 April 2022. Round to two decimal places.
5. Prepare the portion of Jernigans liability section of its Balance Sheet on 30 April 2021 that shows how the mortgage and interest should be reported.