On June 30, Collins Management Company purchased land for $480,000 and a building for $720,000, paying $600,000 cash and issuing a 8% note for the balance, secured by a mortgage on the property. The terms of the note provide for 20 semiannual payments of $30,000 on the principal plus the interest accrued from the date of the preceding payment. If an amount box does not require an entry, leave it blank. Assume 360 days in a year. Question Content Area a. Journalize the entry to record the transaction on June 30. Date Account Debit Credit June 30 Feedback Area Feedback Question Content Area b. Journalize the entry to record the payment of the first installment on December 31. Date Account Debit Credit Dec. 31 Feedback Area Feedback Question Content Area c. Journalize the entry to record the payment of the second installment the following June 30. Date Account Debit Credit June 30
On June 30, Collins Management Company purchased land for $480,000 and a building for $720,000, paying $600,000 cash and issuing a 8% note for the balance, secured by a mortgage on the property. The terms of the note provide for 20 semiannual payments of $30,000 on the principal plus the interest accrued from the date of the preceding payment. If an amount box does not require an entry, leave it blank. Assume 360 days in a year. Question Content Area a. Journalize the entry to record the transaction on June 30. Date Account Debit Credit June 30 Feedback Area Feedback Question Content Area b. Journalize the entry to record the payment of the first installment on December 31. Date Account Debit Credit Dec. 31 Feedback Area Feedback Question Content Area c. Journalize the entry to record the payment of the second installment the following June 30. Date Account Debit Credit June 30
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
On June 30, Collins Management Company purchased land for $480,000 and a building for $720,000, paying $600,000 cash and issuing a 8% note for the balance, secured by a mortgage on the property. The terms of the note provide for 20 semiannual payments of $30,000 on the principal plus the interest accrued from the date of the preceding payment.
If an amount box does not require an entry, leave it blank. Assume 360 days in a year.
Question Content Area
a.
| Date | Account | Debit | Credit |
|---|---|---|---|
| June 30 |
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Feedback Area
Feedback
Question Content Area
b. Journalize the entry to record the payment of the first installment on December 31.
| Date | Account | Debit | Credit |
|---|---|---|---|
| Dec. 31 |
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Feedback Area
Feedback
Question Content Area
c. Journalize the entry to record the payment of the second installment the following June 30.
| Date | Account | Debit | Credit |
|---|---|---|---|
| June 30 |
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