Pina Colada Corp. receives $180,000 when it issues a $180,000, 9%, mortgage note payable to finance the construction of a building at December 31, 2019. The terms provide for annual installment payments of $30,000 on December 31. Prepare the journal entries to record the mortgage loan and the first two payments

Answer and Explanation:

The Journal entry is shown below:-

Dec 2019 Cash Dr, $180,000

      To Mortgage Payable $180,000

(Being mortgage loan taken is recorded)

Dec 2020 Interest expenses Dr,$16,200

Mortgage Payable Dr, $13,800

       To Cash $30,000

(Being first installment payment is recorded)

Dec 2021 Interest expenses Dr,$14,742

Mortgage Payable Dr, $15,258

       To Cash $30,000

(Being second installment payment is recorded)

Working note:-

For 2020 Interest expenses = $180,000 × 9%

= $16,200

Mortgage payable = $30,000 - $16,200

= $13,800

For 2021 Interest expenses = ($180,000 - $16,200) × 9%

= $14,742

Mortgage payable = $30,000 - $14,742

= $15,258

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

your welcome leave a rate and a < 3