**Description:**This section demonstrates how Larkspur, Inc. records financial transactions related to a mortgage note payable. The scenario describes Larkspur, Inc. receiving $260,400 upon issuing a $260,400 mortgage note with a 10% interest rate, dated December 31, 2022. The mortgage is to finance the construction of a building. The payment terms stipulate annual installment payments of $43,400, due each year on December 31.**Objective:**Prepare journal entries to record the mortgage loan and the first two installment payments.**Instructions:**1. **Journal Entry Table:** - **Columns:** - **Date:** When the transaction is recorded. - **Account Titles and Explanation:** Description of accounts affected and the purpose of the transaction. - **Debit:** Amounts recorded in the debit column. - **Credit:** Amounts recorded in the credit column.2. **Details:** - **Date**: - Options for selection of transaction date. - Entries are given for two specific dates: December 31, 2023, and December 31, 2024. - **Account Titles and Explanation:** - Blank fields are provided for entering the account names and details of the transaction. - **Debit and Credit:** - Empty fields are provided for entering the monetary amounts for debits and credits. **Note:** Credit account titles are automatically indented when the amount is entered. Do not indent manually.This framework helps account for the financial impact of the mortgage on Larkspur, Inc.'s books over the specified time period.

Journal: Recording of a business transactions in a chronological order.Entries:

Larkspur, Inc. receives $260,400 when it issues a $260,400, 10% mortgage note payable to finance the construction of a building at December 31, 2022. The terms provide for annual installment payments of $43,400 on December 31. Prepare the journal entries to record the mortgage loan and the first two payments. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Larkspur, Inc. receives $260,400 when it issues a $260,400, 10% mortgage note payable to finance the construction of a building at December 31, 2022. The terms provide for annual installment payments of $43,400 on December 31. Prepare the journal entries to record the mortgage loan and the first two payments. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

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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Subject : Accounting
Da
Please answer both. This is part A and B
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