On January 1, 2024, Livingston Company purchased land costing $649,000. Instead of paying cash at the time of purchase, Livingston plans to make four installment payments of $174,598.55 on June 30 and December 31 in 2024 and 2025. The payments include interest at a rate of 6%. Required: 1. Record the purchase of land when the note is issued. 2. Record the first installment payment on June 30, 2024, and the second installment payment on December 31, 2024. 3. Calculate the balance of Notes Payable and Interest Expense on December 31, 2024.
On January 1, 2024, Livingston Company purchased land costing $649,000. Instead of paying cash at the time of purchase, Livingston plans to make four installment payments of $174,598.55 on June 30 and December 31 in 2024 and 2025. The payments include interest at a rate of 6%. Required: 1. Record the purchase of land when the note is issued. 2. Record the first installment payment on June 30, 2024, and the second installment payment on December 31, 2024. 3. Calculate the balance of Notes Payable and Interest Expense on December 31, 2024.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter10: Liabilities: Current, Installment Notes, And Contingencies
Section: Chapter Questions
Problem 6E: Fixed asset purchases with note On June 30, Collins Management Company purchased land for 400,000...
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![Exercise 9-3 (Algo) Record installment notes (LO9-2)
On January 1, 2024, Livingston Company purchased land costing $649,000. Instead of paying cash at the time of purchase, Livingston
plans to make four installment payments of $174,598.55 on June 30 and December 31 in 2024 and 2025. The payments include
interest at a rate of 6%.
Required:
1. Record the purchase of land when the note is issued.
2. Record the first installment payment on June 30, 2024, and the second installment payment on December 31, 2024.
3. Calculate the balance of Notes Payable and Interest Expense on December 31, 2024.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Record the purchase of land when the note is issued. (If no entry is required for a particular transaction/event, select "No Journal Entry
Required" in the first account field.)
View transaction list
Journal entry worksheet
< 1
Record the issue of Notes Payable for Land.
Note: Enter debits before credits.
Date
January 01, 2024
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbc8d9232-38be-41e2-acdc-e4026edb330c%2F6422c4ab-f5cd-4d2c-a6c8-fbcd679079d7%2Famq934u_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 9-3 (Algo) Record installment notes (LO9-2)
On January 1, 2024, Livingston Company purchased land costing $649,000. Instead of paying cash at the time of purchase, Livingston
plans to make four installment payments of $174,598.55 on June 30 and December 31 in 2024 and 2025. The payments include
interest at a rate of 6%.
Required:
1. Record the purchase of land when the note is issued.
2. Record the first installment payment on June 30, 2024, and the second installment payment on December 31, 2024.
3. Calculate the balance of Notes Payable and Interest Expense on December 31, 2024.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Record the purchase of land when the note is issued. (If no entry is required for a particular transaction/event, select "No Journal Entry
Required" in the first account field.)
View transaction list
Journal entry worksheet
< 1
Record the issue of Notes Payable for Land.
Note: Enter debits before credits.
Date
January 01, 2024
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
>
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