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Mortgage Payable The following amortization schedule can be used for the January, 20x3 mortgage payment on...

Mortgage Payable

The following amortization schedule can be used for the January, 20x3 mortgage payment on the 7.0%, 30- year mortgage.

Month

Payment

Interest

Principal

Balance

January

$3,500

$1,867

$1,633

$320,000

$318,367

Jan 31 The monthly payment for January of the mortgage payable was made.

Required:

What is the correct journal entry for this transaction and why?

Expert Solution

Date	Account Titles and Explanation	Debit	Credit
Jan-31	Interest expense	$ 1,867
	Mortgage Payable	$ 1,633
	Cash		$ 3,500
	(Being Mortgage payable recorded)

	Total Amount payable	=	$ 3,500

	Interest Expense	=	$ 1,867
	Principal repaid	=	$ 1,633
	Total Amount payable	=	$ 3,500

ekkarill92 answered 3 years ago

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