On January 1, 2019, West company acquired a tract of land for P1,000 000. West company paid P100,000 down and singed a two - year promissory note for the balance plus 10% interest compounded annually. The note matures on January 1, 2021. Required: Prepared journal entries to record: 1. Purposed of land on January 1, 2019 2. Accrued interest on December 31, 2019 3. Accrued interest on December 31, 2020 4. Full payments on the note on January 1, 2021

On January 1, 2019, West company acquired a tract of land for P1,000 000. West company paid P100,000 down and singed a two - year promissory note for the balance plus 10% interest compounded annually. The note matures on January 1, 2021. Required: Prepared journal entries to record: 1. Purposed of land on January 1, 2019 2. Accrued interest on December 31, 2019 3. Accrued interest on December 31, 2020 4. Full payments on the note on January 1, 2021

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Problem 8-5 (with solution/explanation)