On 1 April 2019, Exotica Ltd borrowed $56,870 from the bank at 10% per annum interest. This loan was a secured loan and is was for one year. This loan is repayable in amounts of $5,000 at the end of each month.

Required

1. In an excel spreadsheet prepare a journal entry to record the initial mortgage (1 mark).

2. Within the Excel spreadsheet prepare a mortgage schedule for this loan. Round your calculations to two decimal places and the nearest dollar (16 marks)

3. In the Excel spreadsheet, use the mortgage schedule to prepare the journal entries for loan repayments for April and May 2019 (3 marks).