(Solution) - On July 1 2015 Ketchikan Inc borrowed 90 000 to finance -(2025 Original AI-Free Solution)

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On July 1, 2015, Ketchikan Inc. borrowed $90,000 to finance the purchase of machinery. The terms of the mortgage require payments to be made at the end of every month with the first payment of $1,589 being due on July 31, 2015. The length of the mortgage is seven years, and the mortgage carries an interest rate of 12% compounded monthly.
1. Prepare a mortgage amortization schedule for the last six months of 2015.
2. How much interest expense will be reported in 2015 in connection with this mortgage?
3. What amount will be reported in Ketchikan's balance sheet as mortgage liability at the end of 2015?