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Glen Pool Club, Inc., has an Installment loan outstanding with a current balance of $142,000. The company makes monthly Installment: of $1,461, which include interest
Glen Pool Club, Inc., has an Installment loan outstanding with a current balance of $142,000. The company makes monthly Installment: of $1,461, which include interest computed at an annual rate of 6 percent. a. Prepare a partlal 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 loan's unpald balance. b. Prepare the journal entry to record the second monthly payment. c. WIIl monthly interest increase, decrease, or stay the same over the life of the loan? Complete this question by entering your answers in the tabs below. 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 loan's unpaid balance. (Enter all amounts as positive numbers. Round your answers to the nearest dollar amount.) Journal entry worksheet Record second monthly installment on mortgage payable. Note: Enter debits before credits. Will monthly interest increase, decrease, or stay the same over the life of the loan
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