Question: Peyton Co. receives ($ 110,000) when it issues a ($ 110,000,10 %), mortgage note payable to finance the construction of a building at December 31,

Peyton Co. receives $\$ 110,000$ when it issues a $\$ 110,000,10 \%$, mortgage note payable to finance the construction of a building at December 31, 1996. The terms provide for semiannual installment payments of $\$ 7,500$ on June 30 and December 31.

\section*{Instructions}

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

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