M Sport Ltd$.$ has a December $31$ year$-$end and prepares its adjusting journal entries annually. A partial

excerpt from the Statement of Financial Position as at December $31,2022$ is shown below:

Current Liabilities

Interest payable on note

Note payable $(3-$month note with $6\%$ interest due at maturity on January $31,2023)$

$$250$

$$25,000$

Shareholders' Equity

Preferred shares $-$$$2$ non$-$cumulative, $5,000,000$ authorized, $25,000$ issued

Common shares $-$ unlimited authorized, $100,000$ issued

$$1,000,000$

$$2,500,000$

The following transactions occurred in $2023$:

June $30,2023$

Signed a $4-$year $8\%$ mortgage payable of $$500,000.$ The mortgage requires

semi$-$annual payments of $$74,264$ on June $30$ and December $31.$

July $1,2023$

Declared the annual cash dividend to the preferred shareholders of record on July

$20,$ payable August $5.$

Required:

a$)$ Prepare the journal entry that M Sport Ltd$.$ would record on the maturity of the note payable on

January $31,2023.(2$ marks$)$

b$)$ Prepare the instalment payment schedule for the first $4$ payments of the mortgage payable. Round

all calculations to the nearest dollar. $(5$ marks$)$

c$)$ Prepare the journal entry that M Sport Ltd$.$ would record for the mortgage payable on

December $31,2023.(3$ marks$)$

d$)$ Show the amounts that M Sport Ltd$.$ will report for the mortgage payable for the current liabilities

and non$-$current liabilities sections at December $31,2023.(2$ marks$)$

Current liabilities

Non$-$current liabilities

e$)$ Prepare the journal entries that M Sport Ltd$.$ would record for the preferred shares dividends on

July $1,2023$; July $20,2023$; and August $5,2023.$ If no journal entry is required, state $"$No Entry" for

your answer. $(6$ marks$)$