Cove Resort Corp. issued a 20-year, 7%, $240,000 mortgage note payable to finance the construction of a new building on December 31, 2017. The terms provide for semi-annual instalment payments on June 30 and December 31.
Instructions
Prepare the journal entries to record the mortgage note payable and the first two instalment payments assuming the payment is:
(a) A fixed principal payment of $6,000.
(b) A blended payment of $11,239.