On January 1 2018 Gundy Enterprises purchases an office for

On January 1, 2018, Gundy Enterprises purchases an office for $294,000, paying $54,000 down and borrowing the remaining $240,000, signing a 7%, 10-year mortgage. Installment payments of $2,786.60 are due at the end of each month, with the first payment due on January 31, 2018. Record the first monthly mortgage payment

Solution

Jan-31-18 Interest expense 1400 =240000*7%/12 Mortgage payable 1386.6          Cash 2786.6