On June 30 New Wave Company purchased land for 250 000
On June 30, New Wave Company purchased land for $250,000, equipment for $325,000, and a building for $500,000, paying $500,000 cash and issuing a 5% note for the balance, secured by a mortgage on the property. The terms of the note provide for 23 semiannual payments of $25,000 on the principal plus the interest accrued from the date of the preceding payment. Journalize the entry to record
(a) The transaction on June 30,
(b) The payment of the first installment on December 31,
(c) The payment of the second installment the following June 30.
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