Suminski Flooring Company buys a building for $115,000, paying $30,000 cash and signing a 30-year mortgage note for $85,000 at 11% annual interest
The payment will be made in equal monthly installments of $809. Prepare the journal entry for the first monthly payment. (Round your answers to the nearest whole dollar number.)
What will be an ideal response
Mortgage Payable ($809 — 779 ) 30
Interest Expense ($85,000 x 11% x 1/12 ) 779
Cash 809
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