Nance Co. receives $280,000 when it issues a $280,000, 6%, mortgage note payable to finance the construction

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Nance Co. receives $280,000 when it issues a $280,000, 6%, mortgage note payable to finance the construction of a building at December 31, 2014. The terms provide for semiannual installment payments of $14,285 on June 30 and December 31.

Instructions

Prepare the journal entries to record the mortgage loan and the first two installment payments.

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Accounting Tools for Business Decision Making

ISBN: 978-1118128169

5th edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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Question Posted: Apr 07, 2014 11:09 AM

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Nance Co. receives $280,000 when it issues a $280,000, 6%, mortgage note payable to finance the construction

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Issuance of Note 2014 Dec 31 Cash 280000 Mortgage Payable ...View the full answer

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