Sunland Company borrowed $760,000 on December 31, 2019, by issuing an $760,000, 9% mortgage note payable. The terms call forannual installment payments of $118,423 on December 31.(a)Your answer is correct.Prepare the journal entries to record the mortgage loan and the first two installment payments. (Round answers to O decimalplaces, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.Record journal entries in the order presented in the problem. List all debit entries before credit entries.)DateDec. 31, 2019ec. 31, 2020Account Titles and ExplanationCashMortgage PayableInterest ExpenseMortgage PayableCashDebit760,0006840050023Credit760,000118423 ec. 31, 2021(b)List of AccountsCurrent liabilityInterest ExpenseLong-term liabilityMortgage PayableCash63,898tA54,525Indicate the amount of mortgage note payable to be reported as a current liability and as a long-term liability at December 31,2021. (Round answers to 0 decimal places, e.g. 15,250.)118,423Attempts: 2 of 4 used

Introduction: The liabilities of a corporation are listed on its balance sheet, which is a common…

(b) Indicate the amount of mortgage note payable to be reported as a current liability and as a long-term liability at December 31, 2021. (Round answers to 0 decimal places, e.g. 15,250.) Current liability Long-term liability $ $

(b) Indicate the amount of mortgage note payable to be reported as a current liability and as a long-term liability at December 31, 2021. (Round answers to 0 decimal places, e.g. 15,250.) Current liability Long-term liability $ $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sunland Company borrowed $760,000 on December 31, 2019, by issuing an $760,000, 9% mortgage note payable. The terms call for annual installment payments of $118,423 on December 31. (a) Your answer is correct. Prepare the journal entries to record the mortgage loan and the first two installment payments. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Dec. 31, 2019 ec. 31, 2020 Account Titles and Explanation Cash Mortgage Payable Interest Expense Mortgage Payable Cash Debit 760,000 68400 50023 Credit 760,000 118423
Subject : Accounting
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