a) In your own words, what is a long-term liability? b) To record the purchase of a building for $150,000, paying $100,000 in cash and signing a 30-year mortgage at 6% for the balance, the journal entry would be: Date Accounts and Explanation Debit Credit

a) In your own words, what is a long-term liability? b) To record the purchase of a building for $150,000, paying $100,000 in cash and signing a 30-year mortgage at 6% for the balance, the journal entry would be: Date Accounts and Explanation Debit Credit

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

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Question

a) In your own words, what is a long-term liability?
b) To record the purchase of a building for $150,000, paying $100,000 in cash and signing a 30-year
mortgage at 6% for the balance, the journal entry would be:
Date
Accounts and Explanation
Debit
Credit

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