Question: QUESTION 1 Eve Corporation issues a $9,000,000, 5%, 20- year mortgage note payable on December 31, 2021, to obtain needed financing for the construction

QUESTION 1 Eve Corporation issues a $9,000,000, 5%, 20- year mortgage note payable on December 31, 2021, to obtain needed financing for the construction of a building addition. The terms provide for annual installment payments of $578,818 on December 31. REQUIRED: 1) Prepare the journal entries to record the mortgage loan on December 31, 2021, and the first and second installment payment. 2) Will the amount of principal reduction in the second installment payment be more or less than with the first installment payment?

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