Dreiling Company borrowed $300,000 on January 1, 2020, by issuing a $300,000, 8% mortgage note payable. The
Question:
Dreiling Company borrowed $300,000 on January 1, 2020, 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, 2020.
Step by Step Answer:
January 1 2020 a Cash 300000 Mortgage Payable 300000 Decemb...View the full answer
Accounting Principles
ISBN: 978-1119411482
13th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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