Fixed asset purchases with note On June 30, Collins Management Company purchased land for $400,000 and a building for $560,000, paying $360,000 cash and issuing a 5% note for the balance, secured by a mortgage on the property. The terms of the note provide for 20 semiannual payments of $30,000 on the principal plus the interest accrued from the date of the preceding payment. Journalize the entry to record (A) the transaction on June 30, (B) the payment of the first installment on December 31, and (C) the payment of the second installment the following June 30.

BuyFind

Corporate Financial Accounting

15th Edition
Carl Warren + 1 other
Publisher: Cengage Learning
ISBN: 9781337398169
BuyFind

Corporate Financial Accounting

15th Edition
Carl Warren + 1 other
Publisher: Cengage Learning
ISBN: 9781337398169
Chapter 10, Problem 10.6EX
Textbook Problem

Fixed asset purchases with note

On June 30, Collins Management Company purchased land for $400,000 and a building for $560,000, paying $360,000 cash and issuing a 5% note for the balance, secured by a mortgage on the property. The terms of the note provide for 20 semiannual payments of $30,000 on the principal plus the interest accrued from the date of the preceding payment. Journalize the entry to record (A) the transaction on June 30, (B) the payment of the first installment on December 31, and (C) the payment of the second installment the following June 30.

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Chapter 10 Solutions

Corporate Financial Accounting
Ch. 10 - Proceeds from notes payable On January 26, Nyree...Ch. 10 - Employee net pay Lindsey Vaters weekly gross...Ch. 10 - Journalize period payroll The payroll register of...Ch. 10 - Journalize payroll tax The payroll register of...Ch. 10 - Vacation pay and pension benefits Regling Company...Ch. 10 - Journalizing installment notes On the first day of...Ch. 10 - Estimated warranty liability Quantas Industries...Ch. 10 - Quick ratio Adieu Company reported the following...Ch. 10 - Current liabilities Bon Nebo Co. sold 30,000...Ch. 10 - Entries for notes payable Bennett Enterprises...Ch. 10 - Evaluating alternative notes A borrower has two...Ch. 10 - Entries for notes payable A business issued a...Ch. 10 - Entries for discounted note payable A business...Ch. 10 - Fixed asset purchases with note On June 30,...Ch. 10 - Current portion of long-term debt PepsiCo, Inc.,...Ch. 10 - Calculate payroll An employee earns 30 per hour...Ch. 10 - Calculate payroll K. Mello Company has three...Ch. 10 - Summary payroll data In the following summary of...Ch. 10 - Payroll tax entries According to a summary of the...Ch. 10 - Payroll entries The payroll register for D. Salah...Ch. 10 - Payroll entries Widmer Company had gross wages of...Ch. 10 - Payroll internal control procedures Big Howies Hot...Ch. 10 - Internal control procedures Daves Scooters is a...Ch. 10 - Accrued vacation pay A business provides its...Ch. 10 - Pension plan entries Yuri Co. operates a chain of...Ch. 10 - Defined benefit pension plan terms In a recent...Ch. 10 - Entries for installment note transactions On the...Ch. 10 - Entries for installment note transactions On...Ch. 10 - Entries for installment note transactions On...Ch. 10 - Accrued product warranty Fosters Manufacturing Co....Ch. 10 - Accrued product warranty General Motors Company...Ch. 10 - Contingent liabilities Several months ago, Ayers...Ch. 10 - Liability transactions The following items were...Ch. 10 - Entries for payroll and payroll taxes The...Ch. 10 - Wage and tax statement data on employer FICA tax...Ch. 10 - Payroll summary The following data for Throwback...Ch. 10 - Payroll accounts and year-end entries The...Ch. 10 - liability transactions The following items were...Ch. 10 - Entries for payroll and payroll taxes The...Ch. 10 - Wage and tax statement data and employer FICA tax...Ch. 10 - Payroll summary The following data for Flexco Inc....Ch. 10 - Payroll accounts and year-end entries The...Ch. 10 - Selected transactions completed by Kornett Company...Ch. 10 - Analyze and compare Amazon.com to Best Buy...Ch. 10 - Analyze and compare Abercrombie Fitch and The Gap...Ch. 10 - Analyze Hershey The Hershey Company (HSY) is the...Ch. 10 - Analyze and compare Neiman Marcus and Kohls Neiman...Ch. 10 - Analyze and compare Cabelas and Dicks Sporting...Ch. 10 - Ethics in Action Tonya Latirno is a staff...Ch. 10 - Communication WBM Motorworks is a manufacturer of...Ch. 10 - Recognizing pension expense The annual examination...

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