Refer to the data in PE 10-9. Make the necessary journal entry (or entries) to record the second month’s mortgage payment on February 28. Round to the nearest penny.

Data from PE 10-9

On January 1, Fehler Company borrowed $1,000,000 to purchase a new building and signed a mortgage agreement pledging the building as collateral on the loan. Th e mortgage is at 10% for 30 years, and the monthly payment is $8,776, payable on January 31 with subsequent payments due at the end of each month thereafter. Make the necessary journal entries to record the following transactions:

1. Acquisition of the mortgage

2. January 31 (first month) payment on mortgage