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Recording and Assessing the effect of installment loansOn December 31, 2015, Dehning Inc. borrowed $500,00 on 8%, 10 year - mortgage note payable. The note is to be repaid inn equal quarterly installments of $18,278 (beginning March 31, 2016).a. Prepare journal entries to reflect (1) the issuance of the mortgage note payable, (2) the payment of the first installment on March 31, 2016, and (3) the payment of the second installment on June 30, 2016. Round amounts to the nearest dollar. b. Post the journal entries of part a to their respective T accountsc. Record each of the transactions from part a in the financial statement effect template

Recording and Assessing the effect of installment loansOn December 31, 2015, Dehning Inc. borrowed $500,00 on 8%, 10 year - mortgage note payable. The note is to be repaid inn equal quarterly installments of $18,278 (beginning March 31, 2016).a. Prepare journal entries to reflect (1) the issuance of the mortgage note payable, (2) the payment of the first installment on March 31, 2016, and (3) the payment of the second installment on June 30, 2016. Round amounts to the nearest dollar. b. Post the journal entries of part a to their respective T accountsc. Record each of the transactions from part a in the financial statement effect template

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Recording and Assessing the effect of installment loans
On December 31, 2015, Dehning Inc. borrowed $500,00 on 8%, 10 year - mortgage note payable. The note is to be repaid inn equal quarterly installments of $18,278 (beginning March 31, 2016).
a. Prepare journal entries to reflect (1) the issuance of the mortgage note payable, (2) the payment of the first installment on March 31, 2016, and (3) the payment of the second installment on June 30, 2016. Round amounts to the nearest dollar.
b. Post the journal entries of part a to their respective T accounts
c. Record each of the transactions from part a in the financial statement effect template

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