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Please assist with the following; Recording and Assessing the Effects of Installment Loans On December 31, 2015, Dehning, Inc., borrowed $500,000 on an 8%, 10-year
Please assist with the following;
Recording and Assessing the Effects of Installment Loans On December 31, 2015, Dehning, Inc., borrowed $500,000 on an 8%, 10-year mortgage note payable. The note is to be repaid in equal quarterly installments of $18,278 (beginning March 31 2016) a. Prepare journal entries to reflect (1) the issuance of the mortgage note payable, (2) the payment of the first installment on March 31, 2016, and (3) the payment of the second installment on June 30, 2016. Round answers to the nearest whole number. General Journal Date Description Debit Credit 2/31/15 Cash 0 Mortgage note payable 0 3/31/16 Interest expense Mortgage note payable 0 Cash 0 6/30/16 Interest expense Mortgage note payable 0 Cash 0
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