. On January 1, Marvelous Metals borrowed $1,200,000 at 7% for 15 years to begin the development of a new mine. Blended principal payments must be made on the first day of each month. (18 marks)

Instructions

(a) Complete the instalment schedule listed below (round to the nearest dollar).

(b) Assuming the year end is March 31, prepare the necessary adjusting entry.

(c) Prepare the journal entries for the payments made on May 1 and June 1.

MARVELOUS METALS

INSTALMENT PAYMENT SCHEDULE- BLENDED PRINCIPAL PAYMENTS

Interest Period	Cash Pmt	Interest Expense	Reduction of Principal	Principal
Jan 1				1,200,000
Feb 1	10,785	?	3,785	1,196,215
Mar 1	?	?	3,807	?
Apr 1	10,785	6,956	?	?
May 1	10,785	?	?	1,184,727
Jun 1	?	?	?	?