Bramble Corp. receives $296,400 when it issues a $296,400, 10% mortgage note payable to finance the construction of a building at December 31, 2022. The terms provide for annual installment payments of $49,400 on December 31.
Prepare the journal entries to record the mortgage loan and the first two payments. (Credit account titles are automatically indented when 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 Dec. 31, 2022 Cash 296400 Mortgage Payable 29640 Dec. 31, 2023 Interest Expense 29640 Mortgage Payable 19760 Cash 4940 Dec. 31, 2024 Interest Expense 27664 Mortgage Payable 21736 Cash 4940