On December 31, 2016, Thompson Hardware Company purchases $300,000 of property by paying $50,000 in cash and signing a 10-year mortgage note at 13% for the balance

The amortization schedule shows that the company will pay $46,072 per year. Journalize the first yearly payment on December 31, 2017.
What will be an ideal response

Mortgage Payable 13,572
Interest Expense 32,500
Cash 46,072

Interest Expense = Principal x Interest
Interest Expense = $250,000 x .13
Interest Expense = $32,500