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Ivanhoe Inc. issues an $720,000, 20%, 10-year mortgage note on December 31, 2022, to obtain financing for a new building. The terms provide for annual installment payments of $150,000.Prepare the entry to record the mortgage loan on December 31, 2022, and the first installment payment on December 31, 2023.

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The entries in the books of Ivanhoe Inc. to record the mortgage loan on December 31, 2022, and December 31, 2023 are as follows:

Journal Entry:

December 31, 2022: Debit Cash $720,000

Credit Notes Payable $720,000

20%, 10-year mortgage note

December 31, 2023: Debit Notes Payable $150,000

Credit Cash $150,000

Transaction Analysis:

December 31, 2022: Cash $720,000 Notes Payable $720,000

20%, 10-year mortgage note

December 31, 2023: Notes Payable $150,000 Cash $150,000

Learn more about recording business transactions at https://brainly.com/question/17201601

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