On December 31, 2019, Beam, Inc., borrowed $1,000,000 on an 5%, ten-year mortgage note payable. The note is to be repaid in equal quarterly installments of $31,921 (beginning March 31, 2020).

Determine the financial statement effect of:

(a) the issuance of the mortgage note payable,

(b) the payment of the first installment on March 31.

(c) the payment of the second installment on June 30.

Round the interest amounts to the nearest dollar. `

Balance Sheet Income Statement

Transaction Assets = Liabilities + Equity Revenues - Expenses = Net Income

a. Borrowing $ $ $ $ $ $

b. First installment $ $ $ $ $ $

c. Second installment Answer $ $ $ $ $ $