Prepare by hand, or in Excel, or in Word and post here.

1) Using a 10 year, 5% loan, $300,000 loan with required monthly payments of $3,181.97. Assume that the loan was taken out on September 1, 2019 and the payments are due on the last day of each month.

a) For the first three monthly payments (9/30/19, 10/31/19, and 11/30/19) Calculate how much of each payment is interest expense and how much will go toward paying down the principal. Show all supporting calculations.

b) Prepare an Amortization table for the first three payments (realizing that the full amortization table would show all 120 months of the loan)

c) Based on your calculations in (a), prepare the journal entries to record the first three payments.

d) Calculate the total interest on the loan.