Question - Cullumber Company receives $385,000when it issues a $385,000,8%, mortgage note payable to finance the construction of a building at December 31, 2017. The terms provide for annual installment payments of $44,979on December 31.
Prepare the schedule using effective-interest method to amortize bond premium or discount of Cullumber Company.
Prepare the journal entry to record the mortgage loan.
Prepare the journal entries to record the first two installment payments.