On January 1, 2021, California Financial purchases a building for $900,000, signing a 5%, 20-year mortgage. Installment payments of $5,939.60 are due at the end of each month, with the first payment due on January 31, 2021. Chat Conversation End Type a message...

The question is missing the below requirement:

Record the issuance of the mortgage installment and the first two monthly mortgage payments. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)

The journal entry on the issuance of mortgage is shown below:

Dr Buildings            $900,000.00

Cr Notes Payable                           $900,000.00

Explanation:

The calculation of interest payments for the first two months as well as journal entries are found in the attached.

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