fixed principal blended principal payments

Ste. Anne Corp. obtained a 10-year, 5%, $123,000 mortgage loan to finance the purchase of a building at December 31, 2017. The terms provide for semi-annual instalment payments on June 30 and December 31.

– Record the first two instalment payments on June 30, 2018, and December 31, 2018, assuming the payment is (1) a fixed principal payment of $6,150 plus interest, and (2) a blended principal and interest payment of $7,890.