Acc280 Financial Accounting: E15-10 Leoni Co. receives $240,000 when it issues

Acc280 Financial Accounting

E15-10
Leoni Co. receives $240,000 when it issues a $240,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2010. The terms provide for semiannual installment payments of $20,000 on June 30 and December 31.

Instructions
Prepare the journal entries to record the mortgage loan and the first two installment payments. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)
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