Inland Corporation purchased a building by signing a 150,000 long-term mortgage with monthly payments of 2,000 . The mortgage carries an interest rate of 12 per cent.

1. For the first three months, prepare a monthly payment schedule showing the monthly payment, the interest for the month, the reduction in debt, and the unpaid balance. (Round to the nearest unit.)

2. Prepare journal entries to record the purchase and the first two monthly payments.