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On July 1, as part of a building purchase, Orangeville Company signed a 30-year mortgage contract in the amount of $300,000. The interest rate on
On July 1, as part of a building purchase, Orangeville Company signed a 30-year mortgage contract in the amount of $300,000. The interest rate on the mortgage is 6.00% COMPOUNDED MONTHLY, making the monthly payments $1,798.65. The first payment is due on August 1 and the second payment is due on September 1. Which one of the following is included in the journal entry to record the SECOND payment, on September 1? A DEBIT to Mortgage Payable of $298.65 A DEBIT to Mortgage Payable of $1,498.51 A DEBIT to Interest Expense of $1,498.51 A DEBIT to Mortgage Payable of $1,500.00
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