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Acompany takes out a five-year, $3.10-million mortgage on October 1. The interest rate on the loan is 10% per year, and blended payments of 565,866
Acompany takes out a five-year, $3.10-million mortgage on October 1. The interest rate on the loan is 10% per year, and blended payments of 565,866 (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 Ending Loan Balance Payment Interest Principal Payment 1 $3.100,000 $65,866 $25,833 $40,033 $3,059.967 Payment 2 3,059,967 65,866 25,500 40.366 3,019,601 Payment 3 3,019.601 65.866 25.163 40,703 2.978,898 Payment 4 2.978,898 65.866 24,824 41.042 2,937,856 [b] Prepare the journal entries to record the inception of the loan and the first two monthly payments. (Credit account titles are outomatically 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.) Prepare the ournal 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 o for the amounts) Date Account Titles and Explanation Debit Credit Oct. 1 Oct. 31 Nov. 30 Listot Accounts
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