Fixed Asset Purchases with NoteOn June 30, Collins Management Company purchased land for $720,000 and a building for $1,080,000, paying $900,000 cash and issuing a 8% note for the balance,secured by a mortgage on the property. The terms of the note provide for 20 semiannual payments of $45,000 on the principal plus the interest accrued from the date ofthe preceding payment.If an amount box does not require an entry, leave it blank.a. Journalize the entry to record the transaction on June 30.June 30b. Journalize the entry to record the payment of the first installment on December 31,Dec. 31c. Journalize the entry to record the payment of the second installment the following June 30.June 30

The journal entries are prepared to keep the record of day to day transactions of the business.

On June 30, Collins Management Company purchased land for $720,000 and a building for $1,080,000, paying $900,000 cash and issuing a 8% note for the balance, secured by a mortgage on the property. The terms of the note provide for 20 semiannual payments of $45,000 on the principal plus the interest accrued from the date o the preceding payment. If an amount box does not require an entry, leave it blank. a. Journalize the entry to record the transaction on June 30. June 30 b. Journalize the entry to record the payment of the first installment on December 31. Dec. 31 C. Journalize the entry to record th

On June 30, Collins Management Company purchased land for $720,000 and a building for $1,080,000, paying $900,000 cash and issuing a 8% note for the balance, secured by a mortgage on the property. The terms of the note provide for 20 semiannual payments of $45,000 on the principal plus the interest accrued from the date o the preceding payment. If an amount box does not require an entry, leave it blank. a. Journalize the entry to record the transaction on June 30. June 30 b. Journalize the entry to record the payment of the first installment on December 31. Dec. 31 C. Journalize the entry to record th

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter10: Liabilities: Current, Installment Notes, And Contingencies

Section: Chapter Questions

Problem 6E: Fixed asset purchases with note On June 30, Collins Management Company purchased land for 400,000...

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