Muscat Corporation an $500,000, 12%, 15year mortgage note on December 31, 2020, to help finance a plant expansion program. The terms provide for semiannual installment payments, not including real estate taxes and insurance, of $36,324. Payments are dueJun0e 30 and Dec. 31.
Required:
a) Prepare a schedule showing the first two installments of 2021.
b) Prepare the entries to record the mortgage loan and the first two installment payment.

Answer rating: 100% (QA)

a Period Cash Payment Interest Expense Reduction of Note Payable Carrying Value Dec 31 2020 500... View the full answer