Cullumber Inc. issues an $740,000, 10%, 10-year mortgage note on December 31, 2022, to obtain financing for a new building. The terms provide for annual installment payments of $110,000. 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. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
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Cullumber Inc. issues an $740,000, 10%, 10-year mortgage note on December 31, 2022, to obtain financing for a new building. The
terms provide for annual installment payments of $110,000.
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. Record journal entries in the order presented
in the problem.)
Date
Account Titles and Explanation
Debit
Credit
Transcribed Image Text:Cullumber Inc. issues an $740,000, 10%, 10-year mortgage note on December 31, 2022, to obtain financing for a new building. The terms provide for annual installment payments of $110,000. 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. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit
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