Ethan purchased a building with a market value of $ 250,000 and land with a market value of $ 50,000 on January 1, 2014. Ethan paid $ 20,000 cash and signed a 20-year, 6% mortgage payable for the balance. The amortization schedule shows that Ethan will pay $ 7,475 in principal the first year.

Requirements
1. Journalize the January 1, 2014, purchase.
2. Journalize the first monthly payment of $ 2,006 on January 31, 2014. (Round to the nearest dollar.).