Ethan Company purchased a building with a market value of $325,000 and land with a market value of $35,000 on January 1, 2025. Ethan Company paid $40,000 cash and signed a 25-year, 12% mortgage payable for the balance.Requirements1.Journalize the January 1, 2025, purchase.2. Journalize the first monthly payment of $3,370 on January 31, 2025. (Round to the nearest dollar.)Requirement 1. Journalize the January 1, 2025, purchase. (Record debits first, then credits. Select explanations on the last line of the journal entry.)DateJan. 1, 2025Accounts and ExplanationsDebitCredit

Step 1:Answer 1.Journal entry to record January 1, 2025 purchase:DateAccount Titles and…

Answered: Ethan Company purchased a building with…

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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