Question $11(12$ points$)$

Mert Company borrowed $$1,500,000$ on December $31,2023,$ by issuing $$1,500,000,8\%$ mortgage note payable. The terms call for annual installment payments of $$200,000$ on December $31.$

Instructions

a$.$ Prepare the journal entries to record the mortgage loan and the first two installment payments.

b$.$ Prepare the installment payments schedule for the first four installment payments. Round the number to the nearest dollar.

c$.$ Indicate the amount of mortgage note payable to be reported as a current liability and as a noncurrent liability at December $31,2023.$