Stuckey Company borrowed $800000 on December 31 2016 by issuing an $800000 8% mortgage note payable. The terms call for annual installment payments of $119224 on December 31.
Instructions
(a) Prepare the journal entries to record the mortgage loan and the first two installment payments.
(b) Indicate the amount of mortgage note payable to be reported as a current liability and as a long-term liability at December 31 2018.

Question

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The Answer of Stuckey Company borrowed $800000 on December 31 2016 by issuing an $800000 8% mortgage note payable. The terms call for annual installment payments of $119224 on December 31.
Instructions
(a) Prepare the journal entries to record the mortgage loan and the first two installment payments.
(b) Indicate the amount of mortgage note payable to be reported as a current liability and as a long-term liability at December 31 2018.

Stuckey Company Borrowed $800000 on December 31 2016 by Issuing