Jernigan Co. receives $300,000 when it issues a $3000,000, 10%, mortgage

Jernigan Co. receives $300,000 when it issues a $3000,000, 10%, mortgage ote payable to finance the construction of a building at December 31, 2019. The terms provide for annual installment payments of $50,000 on December 31.

Instructions

Prepare the journal entries to record the mortgage loan and thefirst two payments

Solution

Jernigan Co.
Journal Entries

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Solution

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