On December 1st, you make a mortgage payment of $1600. The interest on the mortgage is $200. The principal is $1400. How would you record this in the general ledger and balance sheet?
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On December 1st, you make a mortgage payment of $1600. The interest on the mortgage is $200. The principal is $1400. How would you record this in the general ledger and balance sheet?
Debit Insurance Expense for the amount of insurance
Debit Mortgage Payable for the amount of principal
Credit Cash for the total amount.
Insurance Expense balance will be an increase
Mortgage Payable balance will decrease
Cash balance will decrease
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