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Category > Accounting Posted 19 Aug 2017 My Price 4.00

Collins Management Company

Ex 10-6  Fixed asset purchases with note                                                          ObJ. 1

On June 30, Collins Management Company purchased land for $400,000 and a building for

$560,000, paying $360,000 cash and issuing a 5% note for the balance, secured by a mort- gage 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. Journal- ize the entry to record (a) the transaction on June 30, (b) the payment of the first installment on December 31, and (c) the payment of the second installment the following June 30.

 

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Maurice Tutor
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Status NEW Posted 19 Aug 2017 10:08 PM My Price 4.00

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