Bridges Wholesale Company incurred the following costs in 2015 for a warehouse acquired on July 1, 2015, the beginning of its fiscal year:

The company signed a non-interest-bearing note for $600,000 (20 × $30,000) on July 1, 2015. The implicit interest rate is 12% compounded semiannually. Payments of $30,000 are to be made semiannually beginning December 31, 2015, for 10 years.
Instructions:
Give the required journal entries to record (1) the acquisition of the land and building (assume that cash is paid to equalize the cost of the assets and the present value of the note) and (2) the first two semiannual payments, including amortization of note discount.

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Cost of land $132,000 Landscaping $31,000 .....528,000 Property tax for period prior to acquisition Real estate commission . . . . . 10,000 40,000 Remodeling and repairs prior to occupancy Escrow fee 58,200 2,000 .