Kaler

Company purchased a building and land with a fair market value of $650,000

(building, $375,000

and land, $275,000)

on January 1, 2024.

Kaler

signed a 20-year,

8%

mortgage payable. Kaler

will make monthly payments of $5,436.86.

Round to two decimal places. Explanations are not required for journal entries.