Camp elim obtains a $125,000, 6%, five-year loan for a new camp bus on january 1, 2018. what amount will be recorded for interest expense for the first payment on january 31, 2018?

The amount that will be recorded for interest expense for the first payment on January 31, 2018 is $625. Interest expense is type of return which paid by the debtor in this case, Camp Elim for its $125,000 loan for the bus. To get the amount you must calculate 6% of the loan principal and then divided by 12, which is the total month of a year.