Chapter 10, Problem 4BP

a)

To determine

Explain whether the amounts of interest expense and the reductions in the unpaid principal are likely to change in any predictable pattern from month to month.

b)

To determine

Prepare journal entries to record the first two monthly payments on this mortgage.

c)

To determine

Complete the amortization table for two more monthly instalments those due on December 1, 2015, and January 1, 2016.

d)

To determine

Explain whether any amounts relating to this four-year note is classified as current liabilities in Company J’s December 31, 2015, balance sheet.