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A company takes out a six-year, $520,000 long-term loan on March 1. The interest rate on the loan is 5% per year, and blended payments
A company takes out a six-year, $520,000 long-term loan on March 1. The interest rate on the loan is 5% per year, and blended payments of $8,375 (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. Determine the missing amounts. (Round answers to decimal places, es 125.) Beginning Loan Balance $520,000 Payment Interest (1) $2,167 Payment 1 Payment 2 513,792 8,375 (2) Payment 3 507.558 8,375 2,115 Payment 4 (5) 8,375 (6) 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 for the amounts) Account Tities and Explanation Debit Credit (To record the inception of the mortgage) (To record the first monthly payment) To record the second monthly payment) The last loan payment (payent 72), includes $8.340 in principal repayment. Prepare the journal entries to record the last payment. (Credit account tities 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 for the amounts.) Account Titles and Explanation Credit Debit (To record the final payment)
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