Question

Purchased a parcel of land on March 1, 2019 for $980,000 by paying $470,000 in cash...

Purchased a parcel of land on March 1, 2019 for $980,000 by paying $470,000 in cash and signing a short-term note payable with the seller for $510,000. You must repay the $510,000 in exactly one year on March 1, 2020. You agree to pay the seller 5 percent interest (annual rate) on a quarterly basis (June 1, September 1, December 1, 2019, and March 1, 2020).

[Adjusting Entry Required]

What is the Adjusted Entry?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Adjustment Entry General Journal Debit Credit Date 31-12-19 Interest expense $2,125 Interest payable 2,125 (To record adjustm

Add a comment
Know the answer?
Add Answer to:
Purchased a parcel of land on March 1, 2019 for $980,000 by paying $470,000 in cash...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • On March 1, 2019, Myriad Entertainment purchased a parcel of land for $950,000 by paying $490,000 in cash and signing a...

    On March 1, 2019, Myriad Entertainment purchased a parcel of land for $950,000 by paying $490,000 in cash and signing a short-term note payable with the seller for $460,000. You must repay the $460,000 in exactly one year on March 1, 2020. You agree to pay the seller 5% interest (annual rate) on a quarterly basis (June 1, September 1, December 1, 2019; and March 1, 2020). Give the journal entries for each payment and the adjusting entry needed on...

  • On March 1, 2020, Swifty Corporation purchased land for an office site by paying $2660000 cash....

    On March 1, 2020, Swifty Corporation purchased land for an office site by paying $2660000 cash. Swifty began construction on the office building on March 1. The following expenditures were incurred for construction: Date Expenditures March 1, 2020 $1750000 April 1, 2020 2480000 May 1, 2020 4530000 June 1, 2020 4710000 The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $3690000 was borrowed on March 1, 2020 on a...

  • On March 1, 2020, Concord Corporation purchased land for an office site by paying $2740000 cash....

    On March 1, 2020, Concord Corporation purchased land for an office site by paying $2740000 cash. Concord began construction on the office building on March 1. The following expenditures were incurred for construction: Date Expenditures March 1, 2020 $  1790000 April 1, 2020 2530000 May 1, 2020 4490000 June 1, 2020 4880000 The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $3560000 was borrowed on March 1, 2020 on a...

  • 9. On March 1, 2020, Bonita Industries purchased land for an office site by paying $2700000...

    9. On March 1, 2020, Bonita Industries purchased land for an office site by paying $2700000 cash. Bonita began construction on the office building on March 1. The following expenditures were incurred for construction: Date Expenditures March 1, 2020 $ 1700000 April 1, 2020 2490000 May 1, 2020 4590000 June 1, 2020 4890000 The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $3550000 was borrowed on March 1, 2020...

  • 1.On March 1, 2020, Sunland Company purchased land for an office site by paying $2680000 cash....

    1.On March 1, 2020, Sunland Company purchased land for an office site by paying $2680000 cash. Sunland began construction on the office building on March 1. The following expenditures were incurred for construction: Date Expenditures March 1, 2020 $1780000 April 1, 2020 2510000 May 1, 2020 4510000 June 1, 2020 4720000 The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $3540000 was borrowed on March 1, 2020 on a...

  • On March 1, 2017, Crane Company purchased land for an office site by paying $2600000 cash....

    On March 1, 2017, Crane Company purchased land for an office site by paying $2600000 cash. Crane began construction on the office building on March 1. The following expenditures were incurred for construction: Date Expenditures March 1, 2017 $1700000 April 1, 2017 2460000 May 1, 2017 4400000 June 1, 2017 4700000 The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $3500000 was borrowed on March 1, 2017 on a...

  • S9-1 Determining the cost of an asset Highland Clothing purchased land, paying $96,000 cash and signing...

    S9-1 Determining the cost of an asset Highland Clothing purchased land, paying $96,000 cash and signing a $300.000 payable. In addition, Highland paid delinquent property tax of $1,100, title in costing $600, and $4,600 to level the land and remove an unwanted building the journal entry for purchase of the land.

  • On January 1, 2019, John Corp. sold a parcel of land to Goodman Inc. John had...

    On January 1, 2019, John Corp. sold a parcel of land to Goodman Inc. John had purchased the land three years ago at $110,000. John received $50,000 cash and a noninterest bearing note for $320,000 from Goodman Inc. The note is due December 31, 2021 There is no readily available market value for the land, but the current market rate for comparable notes is 8%. SHOW YOUR LABELLED WORK! 1-1. Determine the selling price of the land. 1-2. Record the...

  • On March 1, 2014, Newton Company purchased land for an office site by paying $1,800,000 cash. New...

    On March 1, 2014, Newton Company purchased land for an office site by paying $1,800,000 cash. Newton began construction on the office building on March 1. The following expenditures were incurred for construction: Date                                                   Expenditures March 1, 2014                                  $   1,200,000 April 1, 2014                                          1,680,000 May 1, 2014                                          3,000,000 June 1, 2014                                         4,800,000 The office was completed and ready for occupancy on July 1. To help pay for construction, and purchase of land $2,400,000 was borrowed on March 1, 2014 on...

  • 1). Alpine Clothing purchased land, paying $110,000 cash and signing a $210,000 note payable. In addition,...

    1). Alpine Clothing purchased land, paying $110,000 cash and signing a $210,000 note payable. In addition, Alpine paid delinquent property tax of $1,700, title insurance costing $1,550, and $4,200 to level the land and remove an unwanted building. Record the journal entry for purchase of the land. Begin by determining the cost of the land. Purchase price of land Add related costs: Total cost of land

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT