The Accountant provides you with the following amortization schedule for the Mortgage Payable of $150,000,000 to purchase the land and building (as mentioned in the Capital Assets section above):

Month	Opening balance	Interest expense	Payment	Closing balance at the end of the month
September 2020	$150,000,000	$525,000	$1,532,976	$148,992,024
October 2020	148,992,024	521,472	1,532,976	147,980,520
November 2020	147,980,520	517,932	1,532,976	146,965,476
December 2020	146,965,476	514,379	1,532,976	145,946,879
Total		$2,078,783	$6,131,904

The Accountant wants you to complete the following:

1. Using the above amortization schedule, provide the amount that should be shown as:
   1. Total Mortgage Payable on the statement of financial position at December 31, 2020.
   2. Mortgage interest expense in the Statement of Income for the year ended December 31, 2020.
2. Provide a journal entry to record the December 2020 mortgage payment based on the above amortization table.
3. Provide an adjusting journal entry to move $12,000,000 from Mortgage payable to the Current Portion of Mortgage Payable account.

2. Suppose HEMI purchased the land and building by issuing a 2%, 10-year bonds with a face value of $150 million at par on September 1, 2020. With the bonds paying interest semi-annually on February 28 and August 31 each year.

1. Provide a journal entry to record the interest expense and interest payable for the four months ended December 31, 2020.
2. Explain why the entire $150,000,000 of Bonds Payable would be classified as a long-term liability on the December 31, 2020 Statement of Financial Position.

Provide a journal entry to record the interest payment on February 28, 2021.