On December 31, 2018, Wasley Corporation borrowed $500,000 on a 10%, 10-year mortgage note payable. The note is to be repaid with equal semiannual installments, beginning June 30, 2019.

REQUIRED

a. Compute the amount of the semiannual installment payment. Use the appropriate table (in Appendix A near the end of the book) or a financial calculator, and round amount to the nearest dollar.

b. Prepare the journal entry (1) to record Wasley's borrowing of funds on December 31, 2018, (2) to record Wasley's installment payment on June 30, 2019, and (3) 10 record Wasley's installment payment on December 31, 2019. (Round amounts to the nearest dollar.)

c. Post the journal entries from part b to their respective T-accounts.

d. Record each of the transactions from part b in the financial statement effects template.