On December 31, 2019, ABC Corporation purchased a building costing $500,000 signing an 8%, 5 year mortgage note payable on December 31, 2019. Five ANNUAL payments will be made each year to pay back the mortgage beginning on December 31, 2020.

A. What is the annual installment payment required at an 8% rate?

B. Prepare an effective interest amortization table for the five years. (Date, Annual Cash Installment, Interest Expense, Amortization and Book Value)

C. Give the general journal entries to record each of the five mortgage payments beginning on December 31, 2020.