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Kirk Company Issued a $3500000 10% 10-Year Mortgage Note Payable

Question 166

Essay

Kirk Company issued a $3500000 10% 10-year mortgage note payable to finance the construction of a building at December 31 2017. The terms provide for annual installment payments of $569609.
Instructions
Prepare the entry to record:
(a) the mortgage loan on December 31 2017.
(b) the first installment payment.

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