Yancey Co. receives $300,000 when it issues a $300,000, 10%, mortgage note payable to finance the construction
Question:
Yancey Co. receives $300,000 when it issues a $300,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2022. The terms provide for annual installment payments of $50,000 on December 31.
Instructions
Prepare the journal entries to record the mortgage loan and the first two installment payments.
Step by Step Answer:
Issuance of Note 2022 Dec 31 Cash 300000 Mortgage Payable 300000 First ...View the full answer
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119493631
9th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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