Question
On January1, Greene Autos signed a$210,000, 6%, 30year mortgage that requires semiannual payments of $7,585 on June 30 and December 31 of each year. The
On January1, Greene Autos signed a$210,000, 6%, 30yearmortgage that requires semiannual payments of$7,585 on June 30 and December 31 of each year. The journal entry to record the first semiannual payment would be(round interest calculation to the nearestdollar) to:
A. debit InterestExpense, $6,300; debit MortgagePayable, $1,285; creditCash, $7,585. B. debit InterestExpense, $6,300; debit Mortgageexpense, $1,285; creditCash, $7,585. C. debit InterestExpense, $1,285; debit MortgagePayable, $6,300; creditCash, $7,585. D. debit MortgagePayable, $7,585; creditCash, $7,585.
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