Yusaku Honda died on August 1, 2014, and appointed his son, Shinichi Honda, as the executor for his estate, which means that Yusaku Honda died testate. The will lists the following items:

1. Summer palace for his grandson, Kodomo Honda, secured for mortgage claims: $120,000

2. 2012 Toyota Camry for Shinichi Honda: $40,000

3. 1,000 shares of ACA stock for his widow, Suzuki Honda, secured for his hospital bills: $50,000

In the following week, claims arrived for

Mortgage claims of $5,000, payable in 30 days

Hospital bills of $1,000, payable in 30 days

Monthly rent income for the summer palace was $8,000, which was received on the 25th of every month and dividends from the stock, received on August 15, 2014, was $2,000.

REQUIRED: Classify the two claims into the appropriate class and prepare entries for the payments.