Question

Initially recorded at face value with a debit to Cash and a credit to Mortgage Notes Payable. The journal entry on each payment date is:

Interest Expense
Mortgage Notes Payable
Cash

Answer 1

The journal entry for a payment made on a mortgage loan includes entries for Interest Expense, Mortgage Notes Payable, and Cash.

Step-by-step explanation:

The subject of this question is Business. The question asks about the journal entry for a payment made on a mortgage loan. When a payment is made, it includes an entry for Interest Expense, Mortgage Notes Payable, and Cash. The interest expense is recorded as an expense, the mortgage notes payable is reduced, and cash is decreased.