Question
Taube Corporation takes out a four-year, $1,000,000 mortgage on May 1. The interest rate on the loan is 5% per year, and blended payments of
Taube Corporation takes out a four-year, $1,000,000 mortgage on May 1. The interest rate on the loan is 5% per year, and blended payments of $23,030 (including both interest and principal) are to be made at the end of each month. The following is an extract from the loan amortization table the bank provided the company:
Beginning Loan Balance | Payment | Interest | Principal | Ending Loan Balance | |
Payment 1 | $1,000,000 | $23,030 | $4,167 | $18,863 | $981,137 |
Payment 2 | 981,137 | 23,030 | (1) | 18,942 | 962,195 |
Payment 3 | 962,195 | 23,030 | 4,009 | 19,021 | (2) |
Payment 4 | 943,174 | 23,030 | 3,929 | 19,101 | 924,073 |
required:
The missing amounts in the loan amortization table are?
The journal entry for the inception of the loan is?
The journal entry for the fourth payment is recorded as?
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