Crane Resort Corp. issued a 20-year, 4%, $298,000 mortgage note payable to finance the construction of a new building on December 31, 2021. The terms provide for semi-annual instalment payments on June 30 and December 31. a) Prepare the journal entries to record the mortgage note payable and the first two instalment payments assuming the payment is a fixed principal payment of $7,450. (Round answers to 0 decimal places, e.g. 5,276. 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.) Date Account Titles and Explanation Debit Credit Issue of Note Dec. 31, 2021 (To record issuance of note.) First Instalment Payment June 30, 2022 (To record payment on note.) Second Instalment Payment Dec. 31, 2022 (To record payment on note.) b) Prepare the journal entries to record the mortgage note payable and the first two instalment payments assuming the payment is a blended payment of $10,894. (Round answers to 0 decimal places, e.g. 5,276. 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.) Date Account Titles and Explanation Debit Credit Issue of Note Dec. 31, 2021 (To record issuance of note.) First Instalment Payment June 30, 2022 (To record payment on note.) Second Instalment Payment Dec. 31, 2022

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 16E

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Crane Resort Corp. issued a 20-year, 4%, $298,000 mortgage note payable to finance the construction of a new building on December 31, 2021. The terms provide for semi-annual instalment payments on June 30 and December 31.

a) Prepare the journal entries to record the mortgage note payable and the first two instalment payments assuming the payment is a fixed principal payment of $7,450. (Round answers to 0 decimal places, e.g. 5,276. 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.)

Date	Account Titles and Explanation	Debit	Credit
	Issue of Note
Dec. 31, 2021

	(To record issuance of note.)
	First Instalment Payment
June 30, 2022


	(To record payment on note.)
	Second Instalment Payment
Dec. 31, 2022


	(To record payment on note.)

b) Prepare the journal entries to record the mortgage note payable and the first two instalment payments assuming the payment is a blended payment of $10,894. (Round answers to 0 decimal places, e.g. 5,276. 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.)

Date	Account Titles and Explanation	Debit	Credit
	Issue of Note
Dec. 31, 2021

	(To record issuance of note.)
	First Instalment Payment
June 30, 2022


	(To record payment on note.)
	Second Instalment Payment
Dec. 31, 2022


	(To record payment on note.)

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