On January 1, 2022, XYZ Corporation borrowed $500,000 from a bank, which is to be repaid in 5 years with an annual interest rate of 8%. The company uses the effective interest method to amortize the interest expense. The loan requires monthly payments of principal plus interest.

a) Calculate the monthly payment amount.
b) Prepare an amortization schedule for the first 6 payments.
c) Calculate the interest expense for the first 3 months.
d) Record the journal entry for the first month's payment.
e) Prepare the journal entry to record the loan on January 1, 2022.

Assume that all calculations are done to the nearest dollar and that the company uses a fiscal year that ends on December 31.

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