Carla Vista Resort Corp. issued a 20-year, 5%, $206,000 mortgage note payable to finance the construction...

Carla Vista Resort Corp. issued a 20-year, 5%, $206,000 mortgage note payable to finance the construction of a new building on December 31, 2021. The terms provide for semi-annual instalment payments on June 30 and December 31.

Prepare the journal entries to record the mortgage note payable and the first two instalment payments assuming the payment is a blended payment of $8,206. (Round answers to 0 decimal places, e.g. 5,276. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
	Issue of Note
Dec. 31, 2021

	(To record issuance of note.)
	First Instalment Payment
June 30, 2022


	(To record payment on note.)
	Second Instalment Payment
Dec. 31, 2022


	(To record payment on note.)

Solutions

Expert Solution

Prepare the journal entries to record the mortgage note payable and the first two instalment payments assuming the payment is a blended payment of $8,206. (Round answers to 0 decimal places, e.g. 5,276. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
	Issue of Note
Dec. 31, 2021	Cash	206000
	Mortgage notes payable		206000
	(To record issuance of note.)
	First Instalment Payment
June 30, 2022	Interest expense (2060005%6/12)	5150
	Mortgage note payable	3056
	Cash		8206
	(To record payment on note.)
	Second Instalment Payment
Dec. 31, 2022	Interest expense (206000-3056)5%6/12	5074
	Mortgage note payable	3132
	Cash		8206
	(To record payment on note.)

ekkarill92 answered 1 year ago

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