10-13 2) Your answer is partially correct. Try agai Jernigan Co. receives $300,0

Question

10-13 2) Your answer is partially correct. Try agai Jernigan Co. receives $300,000 when it issues a $300,000, 10%, mortgage note payable to finance the December 31, 2017. The terms provide for annual installment payments of $50,000 on December 31. of a building at Round answers to 0 decimal places, Prepare the journal entries to record the mortgage loan and the first two payments. 15, g, 250. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Mortgage Payable 300000 Dec. 31, 2018 Interest Expense 15000 Mortgage Payable 10000 I Cash 25000 Dec. 31, 2019 |Interest Expense |Mortgage Payable 10500 Cash 20000

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit Dec 31,2017 Cash 300000 Mortgage Payable 300000 Dec 31,2018 Interest expense (300000*10%) 30000 Mortgage Payable 20000 Cash 50000 Dec 31,2019 Interest expense (28000*10%) 28000 Mortgage Payable 22000 Cash 50000

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