Splish Brothers Construction Inc. needed financing to buy two Case graders, Splish Brothers receives $220,000 on January 1, 2022, when it issues a 5-year, 5% mortgage note payable. The terms provide for semi-annual instalment payments on July 1 and January 1. with fixed principal amounts Calculate the fixed principal amount required each six-month period. Fixed principal portion $ 22000 Prepare an instalment payment schedule for the first three interest periods. SPLISH BROTHERS CONSTRUCTION INC. Instalment Payment Schedule - Fixed Principal Payments Interest Period Cash Payment Interest Expense Reduction of Principal Principale Jan. 1. 2022 $ July 1 2022 Jan 1. 2023 July 1, 2023 Prepare the journal entries to record the mortgage note payable and the first three instalment payments. Prepare any necessary adjusting entries at Splish Brothers's December 31, 2022 year end. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1, 2022 July 1, 2022 L Dec. 31, 2022 Dec. 31, 2022 Jan. 1, 2023 July 1, 2023 Provide the balance sheet disclosure for the mortgage note payable at December 31, 2022, being specific about the classifications SPLISH BROTHERS CONSTRUCTION INC. Balance Sheet (Partial) December 31, 2022 |