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On September 1, 2015, a company I've read both chapters and solved all problems at home to be prepared for this exam (further in a
On September 1, 2015, a company "I've read both chapters and solved all problems at home to be prepared for this exam" (further in a text as Company) signed a 30 -year, $547,000 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 10 percent. The note is fully amortizing over a period of 360 months with a $5,000 monthly payment. As a Company's treasury accountant you have to prepare an amortization table showing the allocation of monthly payments between interest and principal over the life of the loan. a. Prepare this amortization table for the first three monthly installments-those due on October 1 , 2015, November 1, 2015 and December 1, 2015. (Round amounts to the nearest dollar.) b. Prepare journal entries to record the first two monthly payments on this mortgage
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