A company takes out a five-year, $3.80-million mortgage on October 1. The interest rate on the loan is4% per year, and blended payments of $69,983(including both interest and principal) are to be made at the end of each month. The following is an extract from the loan amortization table the bank provided the company:

Beginning Loan Balance Payment Interest Principal Ending Loan Balance

Payment 1 $3,800,000 $69,983 $12,667 $57,316 $3,742,684

Payment 2 3,742,684 69,983 12,476 57,507 3,685,177

Payment 3 3,685,177 69,983 12,284 57,699 3,627,478 Payment 4 3,627,478 69,983 12,092 57,891 3,569,587

b) Prepare the journal entries to record the inception of the loan and the first two monthly payments.(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date Account Titles and Explanation Debit Credit

Oct. 1

Oct. 31

Nov. 30