Oriole Resort Corp. issued a 20-year, 7%, $226,000 mortgage note payable to finance the construction of a new building on December 31, 2021. The terms provide for semi-annual instalment payments on June 30 and December 31.

Prepare the journal entries to record the mortgage note payable and the first two instalment payments assuming the payment is a fixed principal payment of $5,650.

Date Debit Credit Account Titles and Explanation Issue of Note Dec. 31, 2021 Cash 226000 226000 Mortgage Note Payable (To record issuance of note.) First Instalment Payment June 30, 2027 Interest Expense 5650 Mortgage Note Payable 5650 11300 Cash (To record payment on note.) Second Instalment Payment Dec. 31, 2027 interest Expense Mortgage Note Payable Cash (To record payment on note.)