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On September 1, 2020, Fisher Corporation incurs a 10-year, $70,000 mortgage liability upon purchase of...

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Accounting

On September 1, 2020, Fisher Corporation incurs a 10-year, $70,000 mortgage liability upon purchase of a warehouse. This mortgage is payable in monthly installments of $1,004, which include interest computed at the rate of 12% per year. The first monthly payment is made on September 30, 2020. Prepare an amortization table showing the first four monthly payments. (10 points) Based on the table you have prepared answer the following questions:

1. How much of the first payment made on September 30, 2020, is allocated to repayment of principal? (2 points) $________

2. What is the total liability related to this mortgage to be reported in Fishers balance sheet on December 31, 2020? (2 points) $________

3. The portion of the second monthly payment made on October 31, 2020, which represents interest expense is: (2 points) $________

4. What is the total amount paid by Fisher over the 10-year life of the mortgage? $_______ .

5. Over the 10-year life of the mortgage, the total amount Fisher will pay for interest charges is $________

with explanations pls,

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