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27 March, 04:39

On January 1, 2018, Stoops Entertainment purchases a building for by borrowing $340,000, signing a 9%, 10-year mortgage. Installment payments of $4,306.98 are due at the end of each month, with the first payment due on January 31, 2018. Record the first monthly mortgage payment on January 31, 2018

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Record the first monthly mortgage payment on January 31, 2018.

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  1. 27 March, 08:16
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    The journal entry would be that first monthly mortgage payment on January 31, 2018 should be debited for amount of $2,250

    Explanation:

    In order to calculate the first monthly mortgage payment on January 31, 2018 we would have to make the following calculation according to the given dа ta:

    first monthly mortgage payment on January 31, 2018=$340,000*9%*1/12

    first monthly mortgage payment on January 31, 2018=$2,550

    Therefore, the journal entry would be that first monthly mortgage payment on January 31, 2018 should be debited for amount of $2,250
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