Delmar Company purchased a building on January 2 by signing a long-term $480,000 mortgage with monthly payments of $4,400. 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 $4,400.
B) credit to the Cash account for $4,000.
C) debit to the Interest Expense account for $4,000.
D) credit to the Mortgage Payable account for $4,400.

Question

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The Answer of Delmar Company purchased a building on January 2 by signing a long-term $480,000 mortgage with monthly payments of $4,400. 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 $4,400.
B) credit to the Cash account for $4,000.
C) debit to the Interest Expense account for $4,000.
D) credit to the Mortgage Payable account for $4,400.

Delmar Company Purchased a Building on January 2 by Signing