On January 1, 2016, Crouser Company sold land to Chad Company, accepting a 2-year, $150,000, non-interest-bearing note due January 1, 2018. The fair value of the land was $128,600.85 on the date of sale. Crouser purchased the land for $105,000 on January 1, 2010.

Required:

Prepare all the journal entries on Crouser's books for January 1, 2016, through January 1, 2018, in regard to the Chad note.

CHART OF ACCOUNTS

Crouser Company

General Ledger

ASSETS

111 Cash

121 Accounts Receivable

125 Notes Receivable

141 Inventory

152 Prepaid Insurance

162 Discount on Notes Receivable

171 Land

181 Equipment

189 Accumulated Depreciation

LIABILITIES

211 Accounts Payable

231 Salaries Payable

250 Unearned Revenue

261 Income Taxes Payable

EQUITY

311 Common Stock

331 Retained Earnings

REVENUE

411 Sales Revenue

431 Interest Income

436 Gain on Sale of Land

EXPENSES

500 Cost of Goods Sold

511 Insurance Expense

512 Utilities Expense

521 Salaries Expense

532 Bad Debt Expense

540 Interest Expense

541 Depreciation Expense

559 Miscellaneous Expenses

910 Income Tax Expense