Question: Hamilton's Electronics issues a $380,000, 8%, 10-year mortgage note on December 31, 2013, to help finance a plant expansion program. The terms provide for semiannual

Hamilton's Electronics issues a $380,000, 8%, 10-year mortgage note on December 31, 2013, to help finance a plant expansion program. The terms provide for semiannual installment payments, not including real estate taxes and insurance, of $27,961. Payments are due June 30 and December 31.

Instructions

(a) Prepare an installment payments schedule for the first 2 years.

(b) Prepare the entries for

(1) The mortgage loan

(2) The first two installment payments.

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