Riley Company issued a $2,500,000, 10%, 10-year mortgage note payable to finance the construction of a building at December 31, 2010. The terms provide for semiannual installment payments of $200,608.
Instructions
Prepare the entry to record:
(a) the mortgage loan on December 31, 2010.
(b) the first installment payment.

Question

Quizplus · Accepted Answer

The Answer of Riley Company issued a $2,500,000, 10%, 10-year mortgage note payable to finance the construction of a building at December 31, 2010. The terms provide for semiannual installment payments of $200,608.
Instructions
Prepare the entry to record:
(a) the mortgage loan on December 31, 2010.
(b) the first installment payment.

Riley Company Issued a $2,500,000, 10%, 10-Year Mortgage Note Payable