Crane $Co.$ receives $$200,000$ when $it$ issues $a$ $$200,000,10\%,$ mortgage note payable $to$ finance the construction $of$ a building $at$

December $31,2022.$ The terms provide for annual installment paymer $isof$ $$25,000on$ December $31.$

$(a)$

Your Answer

Correct Answer

Your answer $is$ correct.

Prepare the journal entries $to$ record the mortgage loan and the first two installment payments. $(List$ all debit entries before credit

entries. Record journal entries $in$ the order presented $in$ the problem. $Ifno$ entry $is$ required, select $"No$ Entry" for the account titles and enter

$0$ for the amount $in$ the relevant debit $OR$ credit box. Entering zero $in$ ALL boxes will result $in$ the question being marked incorrect. Credit

account titles are automatically indented when the amount $is$ entered. $Do$ not indent manually.$)$

Date

Account Titles and Explanation

Debit

Credit

Cash

$200000$

Mortgage Payable

Mortgage Payable

$0(b)$

Your answer $is$ incorrect.

How much $of$ the remaining balance $of$ the mortgage note payable should $be$ reported $as$ a current and noncurrent liability $on$ the

December $31,2024$ balance sheet?

Current portion $of$ mortgage note payable

$

Noncurrent portion $of$ mortgage note payable

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