Response to the following :
Mortgages Payable Second Payment
Refer to the data in problem. Make the necessary journal entry(ies) to record the second month's mortgage payment on February 28. Round to the nearest penny.
Problem:
Mortgages Payable Issuance and First Payment
On January 1, the company borrowed $500,000 to purchase a new building and signed a mortgage agreement pledging the building as collateral on the loan. The mortgage is at 12% for 30 years, and the monthly payment is $5,143 payable on January 31 with subsequent payments due at the end of each month thereafter.
Make the necessary journal entries to record the following transactions:
1. Acquisition of the mortgage.
2. January 31 (first month) payment on mortgage.