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How much of the first payment goes to interest expense

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Question - Answer the following question

On January 1, 2021, Stoops Entertainment purchases a building for $560,000, paying $100,000 down and borrowing the remaining $460,000, signing a 7%, 10-year mortgage. Installment payments of $5,340.99 are due at the end of each month, with the first payment due on January 31, 2021.

a. Record the first monthly mortgage payment on January 31, 2021.

b. How much of the first payment goes to interest expense and how much goes to reducing the carrying value of the loan?

Reference no: EM132717249

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