Question

Brief Exercise 10-18 Splish Brothers Inc. issues a $680,000, 10%, 10-year mortgage note on December 31, 2022, to obtain financing for a new building. The terms provide for annual installment payments of $110,667. Prepare the entry to record the mortgage loan on December 31, 2022, and the first installment payment on December 31, 2023. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Dec. 31, 2022 Dec. 31, 2023

Answer 1

Date	Accounts and explanation	Debit(in $)	Credit(in $)
31-Dec-22	Cash	6,80,000
	Mortgage Payable		6,80,000
31-Dec-23	Interest expenses($680,000*10%)	68,000
	Mortgage Payable	42,667
	Cash		1,10,667