Exercise E10-15

E10-15

Leoni Co. receives $240,000 when it issues a $240,000, 10%, mortgage note payable to finance the construction
of a building at December 31, 2011. The terms provide for semiannual installment payments of $20,000 on June 30 and December 31.

Prepare entries to record mortgage note and installment payments.

Instructions

Prepare the journal entries to record the mortgage loan and the first two installment payments
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Debit: Interest Expense 12,000
Debit: Mortgage Payable 8,000
Credit: Cash 20,000

answered 2 years ago

phxsuns14






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