Question $3$ of $5$

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Wildhorse Co$.$ receives $292,800$ when it issues a $292,800,6\%,$ mortgage note payable to finance the construction of a building at December $31,2020.$ The terms provide for annual installment payments of $40,576$ on December $31.$

Prepare the journal entries to record the mortgage loan and the first two payments. $($Round answers to $0$ decimal places, e$.$g$.15,250.$ Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.$)$

Date

Account Titles and Explanation

Debit

Credit

Cash

Mortgage Payable