1013 2 Your answer is partially correct Try agai Jernigan Co

10-13 2) Your answer is partially correct. Try agai Jernigan Co. receives $300,000 when it issues a $300,000, 10%, mortgage note payable to finance the December 31, 2017. The terms provide for annual installment payments of $50,000 on December 31. of a building at Round answers to 0 decimal places, Prepare the journal entries to record the mortgage loan and the first two payments. 15, g, 250. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Mortgage Payable 300000 Dec. 31, 2018 Interest Expense 15000 Mortgage Payable 10000 I Cash 25000 Dec. 31, 2019 |Interest Expense |Mortgage Payable 10500 Cash 20000

Solution

Journal entry :

Date	accounts & explanation	debit	credit
Dec 31,2017	Cash	300000
	Mortgage Payable		300000
Dec 31,2018	Interest expense (300000*10%)	30000
	Mortgage Payable	20000
	Cash		50000
Dec 31,2019	Interest expense (28000*10%)	28000
	Mortgage Payable	22000
	Cash		50000