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The bank sent Speedy Lube an amortization table showing the allocation of monthly payments between interest and principal over the life of the loan. A
The bank sent Speedy Lube an amortization table showing the allocation of monthly payments between interest and principal over the life of the loan. A small part of this amortization table is illustrated below. (For convenience, amounts have been rounded to the nearest dollar.) AMORTIZATION TABLE (12%, 30-YEAR MORTGAGE NOTE PAYABLE FOR $1,080,000; PAYABLE IN 360 MONTHLY INSTALLMENTS OF $11,110) Interest Period Payment Date Monthly Payment Interest Expense Principal Reduction Unpaid Balance Issue date Sept. 1, 2021 $ 1,080,000 1 Oct. 1 $ 11,110 $ 10,800 $ 310 1,079,690 2 Nov. 1 11,110 10,797 313 1,079,377 Required: b. Prepare journal entries to record the first two monthly payments on this mortgage. c. Complete this amortization table for two more monthly installmentsthose due on December 1, 2021, and January 1, 2022. d. Will any amounts relating to this 30-year mortgage be classified as current liabilities in Speedy Lubes December 31, 2021, balance sheet
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