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On January 1, 2024, Maricopa Company purchased land costing $617,000. Instead of paying cash at the time of purchase, Maricopa plans to make four installment
On January 1, 2024, Maricopa Company purchased land costing $617,000. Instead of paying cash at the time of purchase, Maricopa plans to make four installment payments of $165,989.69 on June 30 and December 31 in 2024 and 2025. The payments include interest at a rate of 6%.
Required:
- Record the purchase of land when the note is issued.
- Record the first installment payment on June 30, 2024, and the second installment payment on December 31, 2024.
- Calculate the balance of Notes Payable and Interest Expense on December 31, 2024.
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