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Stuckey Company Borrowed $800000 on December 31 2016 by Issuing

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Essay

Stuckey Company borrowed $800000 on December 31 2016 by issuing an $800000 8% mortgage note payable. The terms call for annual installment payments of $119224 on December 31.
Instructions
(a) Prepare the journal entries to record the mortgage loan and the first two installment payments.
(b) Indicate the amount of mortgage note payable to be reported as a current liability and as a long-term liability at December 31 2018.


Definitions:

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Set guidelines, specifications, or criteria established by consensus among businesses in a specific industry to ensure quality, safety, and efficiency.

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The responsible overseeing and protection of something considered worth caring for and preserving.

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The systematic process of assessing and measuring the efficiency, effectiveness, or performance of a project, policy, or individual.

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The systematic investigation and study of materials and sources in order to establish facts and reach new conclusions.

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