Question: Talkington Electronics issues a $400,000, 8%, 15-year mortgage note on December 31, 2016. The proceeds from the note are to be used in financing a

Talkington Electronics issues a $400,000, 8%, 15-year mortgage note on December 31, 2016. 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 $59,612. Payments are due on December 31.

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.
(c) Show how the total mortgage liability should be reported on the at December 31, 2017.

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