On January 1, 2019, West company acquired a tract of land for Pl,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
On January 1, 2019, West company acquired a tract of land for Pl,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
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 14RE: On January 1, 2019, Boater Company issues a 20,000 non-interest-bearing, 5-year note for equipment....
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Prepare Journal entries with calculations part.
![On January 1, 2019, West company acquired a tract of land for Pl,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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff2423788-9ffd-4322-844d-e4f574d5183d%2F00a9befe-0e59-4218-bbc5-fe3a6a4883ed%2Fr0obxl_processed.png&w=3840&q=75)
Transcribed Image Text:On January 1, 2019, West company acquired a tract of land for Pl,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
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