byers024
byers024
15.06.2021 • 
Business

Learning Objective 1, 5 2. Long-term liability $685,920

Inchirah Company borrowed $750,000 on January 1, 2012, by issuing $800,000, 8% mortgage note payable. The terms call for semiannual installment payments of $60,000 on June 30 and December 31.

Requirements
1. Prepare the journal entries to record the mortgage loan and the first two instalment payments.
2. Indicate the amount of mortgage note payable to be reported as a current liability and as a long-term liability at December 31, 2012.

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