Tactix Ltd wishes to raise $2 500 000 to carry out construction work as part of a major expansion of its shopping mall operations. The directors decide to issue 10 000 $100 8% debentures, fully payable on application, with interest payable 6-monthly on 1 July and 1 January, and to borrow another $1 500 000 with a mortgage signed against other assets currently unencumbered. The terms of the mortgage loan include a deposit of $150 150, repayments of $28 680 for 60 months and an interest rate of 10% p.a.

All application money for the debentures was received on 1 April 2018 and the debentures were allotted on that date. The mortgage arrangements were finalised also on the same date.

Required

A. Prepare entries (in general journal form) to record the mortgage loan and the receipt of the application money on the debentures on 1 April 2018.

B. Prepare a loan repayment schedule for the mortgage for the first 9 months.

C. Show general journal entries to record all interest payments, and any necessary adjustments, up to 31 December 2018, assuming the end of the financial year is 30 June.