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Blossom Ltd. issued an instalment note on January 1, 2017 (with a required yield of 10%) in exchange for land that it purchased from Safayeni
Blossom Ltd. issued an instalment note on January 1, 2017 (with a required yield of 10%) in exchange for land that it purchased from Safayeni Ltd. Safayenis real estate agent had listed the land on the market for $122,000. The note calls for three equal blended payments of $45,037 that are to be made at December 31, 2017, 2018, and 2019. A)
Year | Note Payment | Interest | Reduction of Principal | Carrying Amount |
1/1/17 | XXX | X | XXX | |
12/31/17 | ||||
12/31/18 | ||||
12/31/19 |
B) Prepare Blossoms journal entry for the purchase of the land (2) C) Prepare Blossoms journal entry for the first instalment payment on the note on December 31, 2017. (3)
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