November 1, 2017

A new investor supplied 2 acres of land in exchange for common stock and a mortgage note. The land has been appraised at $70,000 and the investor received 10,000 shares of stock and a note with a face value of $60,000. The note requires Peavys Cleaning Service to pay interest at a rate of 10% per year and the principal is due in five years. Interest is due each year on Nov 1.

What is the journal entry?