A company takes out an eight-year, $760,000 mortgage on September 1. The interest rate on the mortgage is 8% per year, and blended payments of $10,744 (including both interest and principal) are to be made at the end of each month. The following is an extract from the mortgage amortization table

a) Determine the missing amounts.

b) Prepare the journal entries to record the inception of the mortgage and the first two monthly payments. Ignore year-end accruals of interest.

Beginning Mortgage Balance Ending Mortgage Balance Payment Interest Principal Payment 1 $760,000 $ (1) $5,067 $5,677 $ (2) Payment 2 754,323 10,744 (3) (4) 748,608 Payment 3 (5) 10,744 4,991 5,753 (6) Payment 4 742,855 10,744 4,952 5,792 737,063 Account Titles and Explanation Debit Credit (To record the inception of the mortgage) (To record the first monthly payment) (To record the second monthly payment)