A company takes out a five-year, $2.9-million mortgage on October 1. The interest rate on the loan is 6% per year, and blended payments of $56,065 (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 with: Payment 1 Payment 2 Payment 3 Payment 4 (b) Beginning Loan Balance $2,900,000 2,858,435 2,816,662 2,774,680 Payment Interest Principal $56,065 $14,500 $41,565 56,065 56,065 56,065 14,292 14,083 13,873 41,773 41,982 42,192 Ending Loan Balance $2,858,435 2,816,662 2,774,680 2,732,488 Prepare the journal entries to record the inception of the loan and the first two monthly payments. (Credit account titles are

A company takes out a five-year, $2.9-million mortgage on October 1. The interest rate on the loan is 6% per year, and blended payments of $56,065 (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 with: Payment 1 Payment 2 Payment 3 Payment 4 (b) Beginning Loan Balance $2,900,000 2,858,435 2,816,662 2,774,680 Payment Interest Principal $56,065 $14,500 $41,565 56,065 56,065 56,065 14,292 14,083 13,873 41,773 41,982 42,192 Ending Loan Balance $2,858,435 2,816,662 2,774,680 2,732,488 Prepare the journal entries to record the inception of the loan and the first two monthly payments. (Credit account titles are

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 17P

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