Rob Lucci Company sold to another entity a tract of land costing P5,000,000 for P7,000,000 on January 1, 2019. The buyer paid P1,000,000 down and signed a two-year promissory note for the remainder of the purchase price plus 12% interest compounded annually. The note matures on January 1, 2021. REQUIRED: Prepare journal entries for 2019, 2020 and 2021.
Rob Lucci Company sold to another entity a tract of land costing P5,000,000 for P7,000,000 on January 1, 2019. The buyer paid P1,000,000 down and signed a two-year promissory note for the remainder of the purchase price plus 12% interest compounded annually. The note matures on January 1, 2021. REQUIRED: Prepare journal entries for 2019, 2020 and 2021.
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 15DQ
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Rob Lucci Company sold to another entity a tract of land costing P5,000,000 for P7,000,000 on January 1, 2019.
The buyer paid P1,000,000 down and signed a two-year promissory note for the remainder of the purchase price plus 12% interest compounded annually. The note matures on January 1, 2021.
REQUIRED:
Prepare
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