Question: Pharoah Company borrowed ( $ 3 0 5 , 0 0 0 ) on January 1 , 2 0 2 7 ,

Pharoah Company borrowed

\ (\

305, 000 \)

on January

1, 2027,

by issuing a

\ (\

305, 000, 8 \ % \)

mortgage note payable. The terms call for annual installment payments of

\ (\

46, 000 \)

on December

31 .

(

)

Prepare the journal entries to record the mortgage loan and the first two installment payments.

(

Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.

)

Date

Account Titles and Explanation

Debit

$Pharoah Company borrowed \ ( \ $ 3 0 5 , 0 0 0 \$

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