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On September 1, 2011, Quick Lube signed a 30-year, $1,080, 000 mortgage note payable to Mifflinburg Bank and Trust in conjunction with the purchase of
On September 1, 2011, Quick Lube signed a 30-year, $1,080, 000 mortgage note payable to Mifflinburg Bank and Trust in conjunction with the purchase of a building and land. The mortgage note calls for interest at an annual rate of 12 percent (1 percent per month). The note is fully amortizing over a period of 360 months. The bank sent Quick Lube an amortization table showing the allocation of monthly payments between interest and principal over the life of the loan. A small part of this amortization table is illustrated below. (For convenience, amounts have been rounded to the nearest dollar.) b. Prepare journal entries to record the first two monthly payments on this mortgage. (Omit the "$" sign in your response.) c. Complete this amortization table for two more monthly installments - those due on December 1, 2011, and January 1, 2012. (Round your answers to the nearest dollar amount. Omit the "$" sign in your response.)
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