A company takes out a six-year, $410,000 long-term loan on March 1. The interest rate on the loan is 4% per year, and blended payments of $6,415 (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:
A company takes out a six-year, $410,000 long-term loan on March 1. The interest rate on the loan is 4% per year, and blended payments of $6,415 (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:
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 17P
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Question
![The last loan payment (payment 72), includes $6,394 in principal repayment. Prepare the journal entries to record the last
payment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is
required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)
Account Titles and Explanation
Interest Expense
Mortgage Payable
Cash
Debit
Credit
6415](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F367867ac-aae7-48b3-9909-24f5379d5c66%2F5e4ed273-0be7-4dd9-b454-fec5bb014bbf%2Fyos8w5g_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The last loan payment (payment 72), includes $6,394 in principal repayment. Prepare the journal entries to record the last
payment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is
required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)
Account Titles and Explanation
Interest Expense
Mortgage Payable
Cash
Debit
Credit
6415
![A company takes out a six-year, $410,000 long-term loan on March 1. The interest rate on the loan is 4% per year, and blended
payments of $6,415 (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:
(a)
-Your answer is partially correct.
Determine the missing amounts. (Round answers to 0 decimal places, e.g. 125.)
Payment 11
Payment 2
Payment 3:
Payment 4
Beginning
Loan Balance
$410,000
404,952
399,887
395805 (5)
Payment
6415
6,415
6,415
6,415
(1)
Interest
$1,367
1350
1,333
1316
(2)
(6)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F367867ac-aae7-48b3-9909-24f5379d5c66%2F5e4ed273-0be7-4dd9-b454-fec5bb014bbf%2Fpsrdmx_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A company takes out a six-year, $410,000 long-term loan on March 1. The interest rate on the loan is 4% per year, and blended
payments of $6,415 (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:
(a)
-Your answer is partially correct.
Determine the missing amounts. (Round answers to 0 decimal places, e.g. 125.)
Payment 11
Payment 2
Payment 3:
Payment 4
Beginning
Loan Balance
$410,000
404,952
399,887
395805 (5)
Payment
6415
6,415
6,415
6,415
(1)
Interest
$1,367
1350
1,333
1316
(2)
(6)
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