Glen Pool Club, Inc., has a $145,000 mortgage liability. The mortgage is payable in monthly installments of $1,491, 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.

b. Prepare the journal entry to record the second monthly payment.

c. Will monthly interest increase, decrease, or stay the same over the life of the loan?

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.)

Amortization Table
Monthly Interest Period	Monthly Payment	Interest Expense	Reduction in Unpaid Balance	Unpaid Balance
Original balance
1
2

Prepare the journal entry to record the second monthly payment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

• Record second monthly installment on mortgage payable.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
1

Will monthly interest increase, decrease, or stay the same over the life of the loan?

Monthly interest will		over the life of the loan