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Sunbelt Electronics. issues a $1,000,000, 4.50%, 10-year mortgage note on December 31, 2019. The terms of the note provide for annual install payments, exclusive of
Sunbelt Electronics. issues a $1,000,000, 4.50%, 10-year mortgage note on December 31, 2019. The terms of the note provide for annual install payments, exclusive of real estate taxes and insurance, of $100,000. Payments are due on December 31. a) Complete the following table Cash Payment Interest Expense Annual Interest Period Issue Date Reduction of Principal Principal Balance 1 2 3 4 b) Record the journal entry of issuing mortgage note on December 31, 2019 Date Accounting Titles Debit Credit c) Record the journal entry of first installment payment on December 31, 2020 Date Accounting Titles Debit Credit d) Calculate and show the total amount of principal will be paid by the end of 4th year
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