Delmar Company purchased a building on January 2 by signing a long-term $720,000 mortgage with monthly payments of $6,600. 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 $6,600.
B) credit to the Cash account for $6,000.
C) debit to the Interest Expense account for $6,000.
D) credit to the Mortgage Payable account for $6,600.
Correct Answer:
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