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Delmar Company purchased a building on January 2 by signing a long-term $480,000 mortgage with monthly payments of $4,400. The mortgage carries an interest rate of 10 percent.

The entry to record the first monthly payment will include a:

a. debit to the Cash account for $4,400.

b. credit to the Cash account for $4,000.

c. debit to the Interest Expense account for $4,000.

d. credit to the Mortgage Payable account for $4,400

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9406556

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