Talkington Electronics issues a R$400,000, 8%, 10-year mortgage note on December 31, 2016. 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 R$59,612. Payments are due on December 31.

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

Instructions a. Prepare an installment payments schedule for the first 4 years. b. Prepare the entries for (1) the loan and (2) the first installment payment.

December 31 debit Mortgage Payable R$27,612

c. Show how the total mortgage liability should be reported on the statement of financial position at December 31, 2020.

Current liability2017 R$29,821