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Lucky Company borrowed $1,000,000 on December 31, 2017, by issuing $1,000,000, 8% mortgage note payable. The terms call for annual installment payments of $150,000 on
Lucky Company borrowed $1,000,000 on December 31, 2017, by issuing $1,000,000, 8% mortgage note payable. The terms call for annual installment payments of $150,000 on December 31.
Prepare the journal entries to record the mortgage loan and the first two installment payments.
Indicate the amount of mortgage note payable to be reported as a current liability and as a long-term liability at December 31, 2019.
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