On December 31, 2015, Wasley Corporation borrowed $400,000 on a 8%, 10-year mortgage note payable. The note is to be repaid with equal semiannual installments, beginning June 30, 2016.

Required a. Compute the amount of the semiannual installment payment using a financial calculator or Excel, and round amount to the nearest dollar. Payment: $Answer b. Prepare the journal entry (1) to record Wasleys borrowing of funds on December 31, 2015, (2) to record Wasleys installment payment on June 30, 2016, and (3) to record Wasleys installment payment on December 31, 2016. (Round amounts to the nearest dollar.)

General Journal
Date	Description	Debit	Credit
12/31/15	AnswerCashMortgage note payableInterest expense	Answer	Answer
	AnswerCashMortgage note payableInterest expense	Answer	Answer
06/30/16	Interest expense	Answer	Answer
	AnswerCashMortgage note payableInterest expense	Answer	Answer
	AnswerCashMortgage note payableInterest expense	Answer	Answer
12/31/16	Interest expense	Answer	Answer
	AnswerCashMortgage note payableInterest expense	Answer	Answer
	AnswerCashMortgage note payableInterest expense	Answer	Answer

c. Post the journal entries from part b to their respective T-accounts.

Cash (A)
12/31/15	Answer	Answer
06/30/16	Answer	Answer
12/31/16	Answer	Answer

Mortgage Note Payable (L)
12/31/15	Answer	Answer
06/30/16	Answer	Answer
12/31/16	Answer	Answer

Interest Expense (E)
12/31/15	Answer	Answer
06/30/16	Answer	Answer
12/31/16	Answer	Answer

d. Record each of the transactions from part b in the financial statement effects template.

Balance Sheet										Income Statement
Transaction	Cash Asset	+	Noncash Assets	=	Liabilities	+	Contrib. Capital	+	Earned Capital		Revenue	-	Expenses	=	Net Income
12/31/18 Borrow $500,000 on a 10-year mortgage note payable	Answer	+	Answer	=	Answer	+	Answer	+	Answer		Answer	-	Answer	=	Answer
6/30/19 Interest payment on note	Answer	+	Answer	=	Answer	+	Answer	+	Answer		Answer	-	Answer	=	Answer
12/31/19 Interest payment on note	Answer	+	Answer	=	Answer	+	Answer	+	Answer		Answer	-	Answer	=	Answer