Question
1.On January 1, 2020, Adam Company acquired a tract of land for P1,000,000.The entity paid a down payment of P100,000 and executed a two-year promissory
1.On January 1, 2020, Adam Company acquired a tract of land for P1,000,000.The entity paid a down payment of P100,000 and executed a two-year promissory note for the balance plus 10% interest compounded annually.The note is expected to mature on January 1, 2022.Requirement:Prepare the journal entries to record:
a.Purchase of land on January 1, 2020
b.Accrued interest on December 31, 2020
c.Accrued interest on December 31, 2021
d.Full payment of the note on January 1, 2022
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Cost Accounting Principles And Applications
Authors: Horace Brock, Linda Herrington, La Vonda Ramey
7th Edition
0071115609, 978-0071115605
