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Problem 9-1A (Static) Record and analyze installment notes (LO9-2)

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On January 1, 2024, Gundy Enterprises purchases a building for $360,000, paying $60,000 down and borrowing the remaining $300,000, signing a 7%, 10-year mortgage. Installment payments of $3,483.25 are due at the end of each month, with the first payment due on January 31, 2024.

Problem 9-1A (Static) Part 3

3-a. Record the first monthly mortgage payment on January 31, 2024.

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