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On January 1, 2021, Gundy Enterprises purchases an office building for $250,000, paying $50,000 down and borrowing the remaining $200,000, signing a 8%, 10-year mortgage. Installment payments of $2,426.55 are due at the end of each month, with the first payment due on January 31, 2021.

Required: Record the purchase of the building on January 1, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Journal entry worksheet

• Record the purchase of the building.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
January 01, 2021

Complete the first three rows of an amortization schedule. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)

Date	Cash Paid	Interest Expense	Decrease in Carrying Value	Carrying Value
1/1/2021
1/31/2021
2/28/2021

Record the first monthly mortgage payment on January 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your final answers to 2 decimal places.)

Journal entry worksheet

• Record the first monthly mortgage payment.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
January 31, 2021

	Interest Expense	Reducing the Carrying Value
First payment

Total payments over the 10 years are $291,186 ($2,426.55 120 monthly payments). How much of this is interest expense and how much is actual payment of the loan?

Interest expense
Actual payments on the loan