Exercise 10-24 Nance Co. receives $414,800when it issues a $414,800,7%, mortgage note payable to finance the construction of a building at December 31, 2014. The terms provide for semiannual installment payments of $22,553on June 30 and December 31.

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Prepare the schedule using effective-interest method to amortize bond premium or discount of Nance Co.(Round answers to 0 decimal places, e.g. 125.)

Semiannual Interest Period	Cash Payment	Interest Expense	Reduction of Principal	Principal Balance
Issue date	$	$	$	$
6/30/15
12/31/15

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Prepare the journal entries to record the mortgage loan.(Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2014

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Prepare the journal entries to record the first two installment payments.(Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
First Installment Payment
June 30, 2015
Second Installment Payment
Dec. 31, 2015

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