On October 2, 2000, Scotch Company purchased two acres of land from Irist Company at a cost of $10,000. The Scotch Company signed (issued) a one-year, 10% note requir- ing it to repay the $10,000 principal plus $1,000 interest on October 1, 2001 to Irist Company. Irist Company had originally purchased the land for $10,000.

Required: (1) Using T-accounts, record the purchase of the land and the December 31 end-of-period adjustment for Scotch Company.

(2) Using T-accounts, record the sale of the land and the December 31 end- of-period adjustment for Irist Company.

 TYK-1