A company takes out a four-year, $3,040,000 mortgage on May 1. The interest rate on the loan is 4% per year, and blended payments of $68,640 (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: Payment 1 Payment 2 Payment 3 Payment 4 Beginning Loan Balance May 1 $3,040,000 May 31 2,981,493 2,922,791 2,863,894 Payment Interest Principal $68,640 $10,133 $58,507 68,640 68,640 68,640 Date Account Titles and Explanation 9,938 9,743 9,546 58,702 (To record the inception of the mortgage) 58,897 59,094 (b) Prepare the journal entries to record the inception of the loan and the first two monthly payments. Ignore year-end accruals of interest. (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.) Ending Loan Balance $2,981,493 2,922,791 2,863,894 2,804,800 Debit Credit

A company takes out a four-year, $3,040,000 mortgage on May 1 . The interest rate on the loan is 4% per year, and blended payments of $68,640 (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: (b) Prepare the journal entries to record the inception of the loan and the first two monthly payments. Ignore year-end accruals of interest. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry* for the occount titles and enter 0 for the amounts.)