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Crane Company purchased a building on January 2 by signing a long-term $480000 mortgage with monthly...

Crane Company purchased a building on January 2 by signing a long-term $480000 mortgage with monthly payments of $4300. The mortgage carries an interest rate of 10 percent.

The entry to record the first monthly payment will include a

credit to the Cash account for $4000.
credit to the Mortgage Payable account for $4300.
debit to the Cash account for $4300.
debit to the Interest Expense account for $4000.
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