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On June 30, Collins Management Company purchased land for $440,000 and a building for $600,000, paying $300,000 cash and issuing a 4% note for the

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On June 30, Collins Management Company purchased land for $440,000 and a building for $600,000, paying $300,000 cash and issuing a 4% note for the balance, secured by a mortgage on the property. The terms of the note provide for 20 semiannual payments of $37,000 on the principal plus the interest accrued from the date of the preceding payment Journalize the entry to record (a) the transaction on June 30, (b) the payment of the first installment on December 31, and (c) the payment of the socond installment the following June 30. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS Collins Management Company General Ledger ASSETS REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 110 Cash 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115 Inventory 116 Supplies 118 Prepaid Insurance 120 Land 123 Building 124 Accumulated Depreciation-Building 125 Office Equipment 520 Salaries Expense 524 Depreciation Expense-Building 525 Delivery Expense 526 Repairs Expense 529 Seling Expenses 531 Rent Expense 126 Accumulated Depreciation-Otice Equipment uz Depreciation Experise-omice ce LIABILITIES 210 Accounts Payable 213 Interest Payable 214 Notes Payable 533 Insurance Expense 534 Supplies Expense 535 Payroll Tax Expense 536 Vacation Pay Expense 537 Pension Expense 538 Cash Short and Over 539 Product Warranty Expense 540 Damage Awards and Fines 541 Miscellaneous Expense 710 Interest Expense 215 Salaries Payable 216 Social Security Tax Payable 217 Medicare Tax Payable 218 Employees Federal Income Tax Payable 219 Employees State Income Tax Payable 221 Retirement Savings Deductions Payable 224 Federal Unemployment Tax Payable 225 State Unemployment Tax Payable 226 Vacation Pay Payable 227 Unfunded Pension Liability 228 Product Warranty Payable 229 EPA Fines Payable 710 Interest Expense 219 Employees State Income Tax Payable 221 Retirement Savings Deductions Payable 224 Federal Unemployment Tax Payable 225 State Unemployment Tax Payable 226 Vacation Pay Payable 227 Unfunded Pension Liability 228 Product Warranty Payable 229 EPA Fines Payable 230 Litigation Claims Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary

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