Recording and Assessing the Effects of Installment Loans On December 31, 2015, Dehning, Inc., borrowed $600,000 on an 8%, 10 -year mortgage note payable. The note is to be repaid in equal quarterly installments of $21,933 (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
12/31/15	Answer

Answer	Answer
	Answer

Answer	Answer
3/31/16	Interest expense	Answer	Answer
	Answer

Answer	Answer
	Answer

Answer	Answer
6/30/16	Interest expense	Answer	Answer
	Answer

Answer	Answer
	Answer

Answer

Answer

b. Post the journal entries from part b to their respective T-accounts.

Cash
	Answer	Answer
	Answer	Answer

Interest Expense
	Answer	Answer
	Answer	Answer

Mortgage Note Payable
	Answer	Answer
	Answer	Answer

c. Record each of the transactions from part b in the financial statement effects template. Use negative signs with answers, when appropriate.

Transaction					Cash Asset		+	Noncash Assets		=	Liabilities		+	Contr. Capital	+	Earned Capital		Revenue	-	Expenses	=	Net income
12/31/15 Borrowed on mortgage note payable					$Answer			$Answer			$Answer			$Answer		$Answer		$Answer		$Answer		$Answer
3/31/16 Payment on note					Answer			Answer			Answer			Answer		Answer		Answer		Answer		Answer
6/30/16 Payment on note					Answer			Answer			Answer			Answer		Answer		Answer		Answer		Answer