(Answered) Question - a company takes out a four-year 760000 mortgage

Accounting

Question - A company takes out a four-year, $760,000 mortgage on May 1. The interest rate on the loan is 8% per year, and blended payments of $18,554 (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:

	Beginning Loan Balance	Payment	Interest	Principal	Ending Loan Balance
Payment 1	760,000	18,554	5,067	13,487	745,513
Payment 2	746,513	18,554	4,977	13,577	732,936
Payment 3	732,936	18,554	4,886	13,668	719,268
Payment 4	719,268	18,554	4,795	13,759	705,509

Prepare the journal entries to record the inception of the loan and the first two monthly payments.

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