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Part $1$

Kelly Company purchased a building and land with a fair value of $ $575$ comma $000($building$,$ $ $325$ comma $000$ and$$ land, $ $250$ comma $000)$ on January$1,2025.$ Kelly Company signed a $25-$year, $15\%$ mortgage payable. Kelly Company will make monthly payments of $ $7$ comma $364\mathrm{.}78.$ Round to two decimal places. Explanations are not required for journal entries.

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Part $1$

Requirement $1.$ Journalize the mortgage payable issuance on January$1,2025.($Record debits$$ first, then credits. Exclude explanations from any journal$$ entries.$)$

Date

Accounts

Debit

Credit

Jan. $1,2025$

Building

$325,000\mathrm{.}00$

Land

$250,000\mathrm{.}00$

Mortgage Payable

$575,000\mathrm{.}00$

Part $2$

Requirement $2.$ Prepare an amortization schedule for the first two payments. $($Round all numbers to the nearest$$ cent.$)$

Beginning Balance

Principal Payment

Interest Expense

Total Payment

Ending Balance

$1/1/2025$

$1/31/2025$

$$575,000\mathrm{.}00$

$2/28/2025$