Recording and Assessing the Effects of Installment Loans On December 31, 2018, Thomas, Inc., borrowed $700,000 on a 12%, 15-year mortgage note payable. The note is to be repaid in equal semiannual installments of $50,854 (payable on June 30 and December 31). a. Prepare journal entries to record (1) the issuance of the mortgage note payable, (2) the payment of the first installment on June 30, 2019, and (3) the payment of the second installment on December 31, 2019. Round amounts to the nearest dollar General Journal Date Description Debit Credit 12/31/18 Cash 700,000 Mortgage note payable 0 700,000 6/30/19 Interest expense 42.000 Mortgage rote payable 8,854 50,854 12/31/19 Interest expense 41,469 0 Mortgage note payable . 9.285 50,854 0 Cash 0 0 Cash 0 Interest Expense (E) b. Post the journal entries from part a to their respective T-accounts. Cash (A) Mortgage Note Payable (L) 12/31/18 700,000 12/31/18 700,000 06/30/19 D 50,854 06/30/19 8.854 0 12/31/19 0 50,854 12/31/19 9,385 0 0 12/31/18 06/30/19 12/31/19 42.000 41.469 D 0 Income Statement c. Record each of the transactions from part a in the financial statement effects template, Note: Use negative signs with answers, when appropriate. Balance Sheet Noncash Transaction Cash Asset Asset Liabilities 12/31/18 Borrow $70,000 on a 15-year mortgage note payable $ 700,000+ $ 0 = $ 700,000+ $ 6/30/19 Interest payment on note 0X + 50,854 x 4 12/31/19 Interest payment on note 0 X + 0 = 9,385 x + Contrib. Capital Earned Capital + Expenses = Net Income Revenues O. $ 0 50,854 x 50.854 x 42,000 - OX= 8,854 x O* O+