View Chapter 10 Assignment (1) VIEW Be careful files from the Internet can contain Vituses. Unless you need to edit it's safer to stay in Prote P10-1A (Journal entries for a loan) A company takes out a five-year, S1-million mortgage on October 1. The interest rate on the loan is 6% per year, and blended payments of $19,333 (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: Beginning Loan Balance Ending Loan Balance Payment Interest Principal Payment 1 $1,000,000 $14,333 $5,000 4,928 Payment 2 14,405 $19,333 19.333 19,333 19,333 985,667 971,262 956,785 $985,667 971, 262 956,785 942,236 Payment 3 4.856 14,477 Payment 4 4,784 14,549 Required 3. The monthly payments will be the same amount each month throughout the entire term of the loan. From the loan amortization table, we can see that the portion of the payment related to interest is decreasing each payment. Prepare a brief explanation for why this is happening b. Prepare the journal entries to record the inception of the loan and the first hub monthly payments