Exercise 10.6 Use of an Amortization Table (LO10-4)

Glen Pool Club, Inc., has a $148,000 mortgage liability. The mortgage is payable in monthly installments of $1,522, which include interest computed at an annual rate of 12 percent (1 percent monthly).

a.

Prepare a partial amortization table showing (1) the original balance of this loan, and (2) the allocation of the first two monthly payments between interest expense and the reduction in the mortgages unpaid balance. (Round your answers to the nearest dollar amount. Enter all amounts as positive numbers.)