Sunland Limited issued $10-$year, $7\%$ debentures with a face value of $$2\mathrm{.}16$ million on January $1,2016.$ The proceeds received were

$$1\mathrm{.}80$ million. The discount was amortized on a straight$-$line basis over the $10-$year term. The terms of the debentures stated that the

could be redeemed in full at any point before the maturity date, at a price of $105$ of the principal. There was no requirement for a

sinking fund.

On January $1,2023,$ Sunland issued a mortgage at $101$ with a principal of $$3\mathrm{.}2$ million secured by land and building. The mortgage had

a $25-$year amortization period, with interest payable at $8\%.$ On issuance of the mortgage, Sunland used the proceeds to redeem the

$7\%$ debentures. Sunland prepares financial statements in accordance with ASPE.

Your answer is partially correct.

Prepare the journal entry to record the issuance of the $8\%$ mortgage on January $1,2023.($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 $0$ for the amounts. List debit entry before credit entry.$)$

Date

Account Titles and Explanation

Debit

Credit

Jan. $1$

$2023$

Cash

Mortgage Payable