Talkington Electronics issues a $400,000, 8%, 15-year mortgage note on December 31, 2019. The proceeds from the note are to be used in financing a new research laboratory. The terms of the note provide for annual installment payments, exclusive of real estate taxes and insurance, of $59,612. Payments are due on December 31.

Prepare installment payments schedule and journal entries for a mortgage note payable.

Instructions

1. Prepare an installment payments schedule for the first 4 years.
2. Prepare the entries for (1) the loan and (2) the first installment payment.
3. Show how the total mortgage liability should be reported on the balance sheet at December 31, 2020.

Please show all work!