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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Oo.185. Subject : - Account
On January 1, 2021, Jalen Company purchased land costing $800,000. Instead of paying cash at the time of purchase, Jalen plans to make four installment payments of $215,221.64 on June 30 and December 31 in 2021 and 2022. 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, 2021, and the second installment payment on December 31, 2021. 3. Calculate the balance of Notes Payable and Interest Expense on December 31, 2021.
Subject :- Account
Subject: acounting
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Subject: accounting
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Vishnu
On January 1, 2022, ABC Company buys three hectares of land for exactly P800,000 with the amount to be paid on December 31, 2024. Interest of 3% will be paid each December 31 although a 10 percent annual rate is viewed as reasonable. Use PV factors rounded to TWO decimal places.On December 31, 2022, at what amount should the company report as the liability for this land? On December 31, 2022, what amount of Discount on Notes Payable should be reported by ABC Company on its Statement of Financial Position? Prepare the journal entry on the payment of interest expense on December 31, 2022.
What is the carrying amount of the note as of December 31, 2022
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