Cullumber Electronics issues a $355,500, 3%, 15-year mortgage note on December 31, 2019. The proceeds from the note are to be used in financing a new research laboratory. The terms of the note provide for annual installment payments, exclusive of real estate taxes and insurance, of $41,675. Payments are due on December 31.

(a)

Prepare an installment payments schedule for the first 4 years. (Round answers to 0 decimal places, e.g. 15,250.)

Annual Interest Period		Cash Payment		Interest Expense		Reduction of Principal		Principal Balance
Issue Date								$enter a dollar amount
1		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		enter a dollar amount
2		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
3		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
4		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount

Prepare the entries for (1) the loan and (2) the first installment payment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 15,250. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Show how the total mortgage liability should be reported on the balance sheet at December 31, 2020. (Enter account name only and do not provide descriptive information. Round answers to O decimal places, e.g. 15,250.) Sheridan Electronics Balance Sheet (Partial)