Dreiling Company borrowed $300,000 on January 1, 2022, by issuing a $300,000, 8% mortgage note payable. The
Question:
Dreiling Company borrowed $300,000 on January 1, 2022, by issuing a $300,000, 8% mortgage note payable. The terms call for annual installment payments of $40,000 on December 31.
Instructions.
a. Prepare the journal entries to record the mortgage loan and the first two installment payments.
b. Indicate the amount of mortgage note payable to be reported as a current liability and as a long-term liability at December 31, 2022.
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Related Book For
Accounting Principles
ISBN: 9781119707110
14th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell
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