Problem Two (5 points): P11.3 on page 11-33. Note that the annual instalment payments consist of part interest, part reduction of principal. Talkington has added a Mortgage Payable account to its general ledger. Ignore the Instructions in the textbook and complete the following instead: P11.3 (LO 3, 4) Talkington Electronics issues a R$400,000, 8%, 10-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 R$59,612. Payments are due on December 31. Prepare installment payments schedule and journal entries for a mortgage note payable. Instructions a. Prepare an installment payments schedule for the first 4 years. b. Prepare the entries for (1) the loan and (2) the first installment payment. December 31 debit Mortgage Payable R$27,612 c. Show how the total mortgage liability should be reported on the statement of financial position at December 31, 2020. Current liability-2020 R$29,821 a) Prepare the journal entry to receive the funds on 31 December 2019. b) Talkington prepares annual adjusting entries on 31 March each year. Prepare the required AJE on 31 March 2020. c) Prepare the journal entry for the first instalment payment on 31 December 2020. d) Prepare the required AJE on 31 March 2021. e) Show how the principal and interest should be reported on the Balance Sheet on 31 March 2020. f) What is the total interest expense over the life of the mortgage? g) Using a present value factor, show how the R$59,612 figure was calculated. (Hint: The R$400,000 is a present value figure.)