Thayer Company purchased a building on January 2 by signing a long-term $3,360,000 mortgage with monthly payments of $30,800.The mortgage carries an interest rate of 10 percent.The entry to record the first monthly payment will include a
A)debit to the Cash account for $30,800.
B)credit to the Cash account for $28,000.
C)debit to the Interest Expense account for $28,000.
D)credit to the Mortgage Payable account for $30,800.

Question

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The Answer of Thayer Company purchased a building on January 2 by signing a long-term $3,360,000 mortgage with monthly payments of $30,800.The mortgage carries an interest rate of 10 percent.The entry to record the first monthly payment will include a
A)debit to the Cash account for $30,800.
B)credit to the Cash account for $28,000.
C)debit to the Interest Expense account for $28,000.
D)credit to the Mortgage Payable account for $30,800.

Thayer Company Purchased a Building on January 2 by Signing