LO10-4 PROBLEM 10.4A Preparation and Use of an On September 1, 2015, Speedy Lube signed a 30-year, $1,080,000 mortgage note payable to Jonstown Bank and Trust in conjunction with the purchase of a building and land. The mortgace note calls for interest at an annual rate of 12 percent ( percent per month). The note is fully amortizing over a period of 360 months. The bank sent Speedy Lube an amortization table showing the allocation of monthly payments between interest and principal over the life of the loan. A small part of this amortization table is illustrated below. (For convenience, amounts have been rounded to the nearest dollar.) Amortization Table AMORTIZATION TABLE (12%, 30-YEAR MORTGAGE NOTE PAYABLE FOR $1,080,000; PAYABLE IN 360 MONTHLY INSTALLMENTS OF $11,110) Monthly Payment Expense Reduction Interest Principal Interest Period Payment Date Unpaid Balance Sept. 1, 2011 Oct. 1 Nov. 1 date $1,080,000 1,079,690 1,079,377 Issue 2 $11,110 11,110 $10,800 10,797 $310 313 Instructions Explain whether the amounts of interest expense and the reductions in the unpaid principal are likely to change in any predictable pattern from month to month. a. b. Prepare journal entries to record the first two monthly payments on this mortgage. c. Complete this amortization table for two more monthly installments-those due on December 1, 2015, and January 1, 2016. (Round amounts to the nearest dollar.)