Prepare the journal entries to record the mortgage loan

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Kelso Co. receives $479,000 when it issues a $479,000, 8%, mortgage note payable to finance the construction of a building at December 31, 2010. The terms provide for semiannual installment payments of $30,660 on June 30 and December 31.

Prepare the journal entries to record the mortgage loan and the first two installment payments.

-Issuance of Note
-First installment payment
-Second installment payment

Reference no: EM13133189

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