Record the Journal Entry

On December 1, to prepare for expansion, FCM issued 1,000 shares of stock for $90 per share and signed a $20,000 note that is due November 20, 2022. The note carries a 4.5% annual rate of interest which is to be paid semi-annually so the first interest payment will be made May 31, 2018. (Do not forget to record accrued interest at the end of the year). On December 3, FCM purchased land for $100,000 on which to build a 4,000 sq. ft. facility.

On December 7, NBC Sports contacted FCM about a potential video project. On December 15, FCM paid $1,000 to a consultant to gather focus groups to determine if there was sufficient demand for the project NBC Sports proposed. On December 30, the consultant provided TCM with the report discussing the results of the focus groups