Fived asset purchases with note On June 30, Colins Management Company purchased land for $240,000 and a building for $300,000, paying $300,000 cash and issuing a 6% note for the balance, secured by a mortgage on the property. The terms of the note provide for 20 semannual payments of $15,000 on the principal plus the interest accrued from the date of the preceding payment. If an amount box does not require an entry, leavet blank Assume 360 days in a year & Journae the entry to record the transaction on June 30 June 30 Dec. 31 des 240.000 b. Journalize the entry to record the payment of the first installment on December 31 3 June 30tes Petite Jom the entry to record the payment of the second instaliment the following June 30 88
Fived asset purchases with note On June 30, Colins Management Company purchased land for $240,000 and a building for $300,000, paying $300,000 cash and issuing a 6% note for the balance, secured by a mortgage on the property. The terms of the note provide for 20 semannual payments of $15,000 on the principal plus the interest accrued from the date of the preceding payment. If an amount box does not require an entry, leavet blank Assume 360 days in a year & Journae the entry to record the transaction on June 30 June 30 Dec. 31 des 240.000 b. Journalize the entry to record the payment of the first installment on December 31 3 June 30tes Petite Jom the entry to record the payment of the second instaliment the following June 30 88
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Fixed asset purchases with note
On June 10, Collins Management Company purchased land for $240,000 and a building for $360,000, paying $300,000 cash and issuing a 6% note for the balance, secured by a mortgage on the property. The terms
of the nate provide for 20 semiannual payments of $15,000 on the principal plus the interest accrued from the date of the preceding payment.
If an amount box does not require an entry, leavet blank Assume 360 days in a year
a. Journalize the entry to record the transaction on June 30.
June 30
Dec. 31 hites Lavable
b. Journalize the entry to record the payment of the first installment on December 31.
MA000
June 30 Notes Paratio
300.000
30000
Journalize the entry to record the payment of the second installment the following June 30
Cherest Ferenne
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