unland Resort Corp. issued a 20-year, 6%, $274,000 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. 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 $6,850. (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.) eTextbook and Media
unland Resort Corp. issued a 20-year, 6%, $274,000 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. 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 $6,850. (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.) eTextbook and Media
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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Question
Sunland Resort Corp. issued a 20-year, 6%, $274,000 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.
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 $6,850. (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.) |
eTextbook and Media
List of Accounts
Prepare the journal entries to record the mortgage note payable and the first two instalment payments assuming the payment is a blended payment of $11,854. (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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