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What am I missing here? Glen Pool Club, Inc., has a $144,000 mortgage liability. The mortgage is payable in monthly installments of $1,481, which include
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Glen Pool Club, Inc., has a $144,000 mortgage liability. The mortgage is payable in monthly installments of $1,481, which include interest computed at an annual rate of 12 percent (1 percent monthly). a. Prepare a partial amortization table showing (1) the original balance of this loan, and (2) the allocation of the first two monthly payments between interest expense and the reduction in the mortgage's unpaid balance. b. Prepare the journal entry to record the second monthly payment. c. Will monthly interest increase, decrease, or stay the same over the life of the loan? X Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare a partial amortization table showing (1) the original balance of this loan, and (2) the allocation of the first two monthly payments between interest expense and the reduction in the mortgage's unpaid balance. (Round your answers to the nearest dollar amount. Enter all amounts as positive numbers.) Amortization Table Monthly Payment Interest Expense Reduction in Unpaid Balance Unpaid Balance Monthly Interest Period Original balance 1 $ 1,481 $ $ 41 1,440 1,440 OO 143,959 143,918 2 1,481 41 X Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare the journal entry to record the second monthly payment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction General Journal Debit Credit 1 1 Interest expense 1,440 Mortgage payable 41 Cash 1,481 X Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Will monthly interest increase, decrease, or stay the same over the life of the loan? Monthly interest will decrease over the life of the loanStep by Step Solution
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