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 0 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 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 0 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

Answered: Sunland Company borrowed $760,000 on…

Sunland Company borrowed $760,000 on December 31, 2019, by issuing an $760,000, 9% mortgage note payable. The terms ca annual installment payments of $118,423 on December 31.

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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Question

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

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