A company takes out a four-year, $680,000 mortgage on May 1. The interest rate on the loan is 7% per year, and blended payments of $16,283 (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		680,000		16,283		3,967		12,316		667,684
Payment 2		667,684		16,283		3,895		12,388		655,296
Payment 3		655,296		16,283		3,823		12,460		642,836
Payment 4		642,836		16,283		3,750		12,533		630,303

list of accounts:

Cash Income Tax Payable Interest Expense Interest Payable Accumulated Depreciation-Trucks Advances to Employees Bonds Payable Deferred Income Tax Asset/Liability Depreciation Expense - Machinery Gain on Redemption of Bonds Income Tax Expense Lease Expense Leased Equipment Lease Obligation Loss on Redemption of Bonds Mortgage Payable Premium on bonds payable Truck Under Finance Lease

Prepare the journal entries to record the inception of the loan and the first two monthly payments. (Credit account titles Debit Credit Date Account Titles and Explanation May 1 May 31 Jun. 30