#6 On January 1, 2020, California Financial purchases a building for $900,000, signing a 5%, 20-year note payable. Installment payments of $5,940 are due at the end of each month, with the first payment due on January 31, 2020. Presented below is a partial amortization schedule: Interest Reduce Expense Carrying Value Date Cash Paid Carrying Value $5,940 $5,940 $5,940 $5,940 $5,940 $5,940 $5,940 $5,940 $5,940 $5,940 $5,940 $5,940 1/1/2020 1/31/2020 2/29/2020 3/31/2020 4/30/2020 5/31/2020 6/30/2020 7/31/2020 8/31/2020 9/30/2020 10/31/2020 11/30/2020 12/31/2020 1/31/2021 2/28/2021 3/31/2021 4/30/2021 5/31/2021 6/30/2021 7/31/2021 8/31/2021 9/30/2021 10/31/2021 11/30/2021 12/31/2021 Required: $3,750 $3,741 $3,732 $3,723 $3,713 $3,704 $3,695 $3,685 $3,676 $3,666 $3,657 $3,648 $3,638 $3,628 $3,619 $3,609 $3,599 $3,590 $3,580 $3,570 $3,560 $3,550 $3,540 $3,530 $2,190 $2,199 $2,208 $2,217 $2,227 $2,236 $2,245 $2,255 $2,264 $2,274 $2,283 $2,292 $2,302 $2,312 $2,321 $2,331 $2,341 $2,350 $2,360 $2,370 $2,380 $2,390 $2,400 $2,410 $900,000 $897,810 $895,611 $893,403 $891,186 $888,959 $886,723 $884,478 $882,22% $879,959 $877,685 $875,402 $873,110 $870.808 $868,496 $866,175 $863,844 $861,503 $859,153 $856,793 $854,423 $852,043 $849,653 $847,253 $844,843 $5,940 $5,940 $5,940 $5,940 $5,940 $5,940 $5,940 $5,940 $5,940 $5,940 $5,940 $5,940 LABEL answers 6A, 6B, 6C, 6D, 6E 9 points A) Record with a journal entry the purchase of the building on January 1, 2020. B) Record with a journal entry the first monthly mortgage payment on January 31, 2020. C) Interest expense is presented on which financial statement? Balance Sheet Income Statement Statement of Retained Earnings D) The installment note is presented on which financial statement? Balance Sheet Income Statement Statement of Retained Earnings E) Total payments over the 20 years are $1,425,600. How much of this total payment amount relates to interest expense