Tony$$s favorite memories of his childhood were the times he spent with his dad at camp. Tony was daydreaming of those days a bit as he and Suzie jogged along a nature trail and came across a wonderful piece of property for sale. He turned to Suzie and said, $$I$$ve always wanted to start a camp where families could get away and spend some quality time together. If we just had the money, I know this would be the perfect place.$$ On November $1,2025,$ Great Adventures purchased the land by issuing a $$720,000,6\%,10-$year installment note to the seller. Payments of $$7,993$ are required at the end of each month over the life of the $10-$year loan. Each monthly payment of $$7,993$ includes both interest expense and principal payments $($i$.$e$.,$ reduction of the loan amount$).$

Late that night, Tony exclaimed, $$We now have land for our new camp; this has to be the best news ever!$$ Suzie said, $$There$$s something else I need to tell you. I$$m expecting!$$

General Journal:

$1.$ Record the issuance of the long$-$term note payable for the purchase of land on November $1,2025.$

$2.$ Record the first monthly payment on the long$-$term note payable, made on November $30,2025.$

$3.$ Record the second monthly payment on the long$-$term note payable, made on December $31,2025.$

$4.$ The $12$ monthly payments in $2026($following year$)$ will reduce the note's balance by an additional $$54,739.$ Record the reclassification of this amount from long$-$term notes payable to current notes payable.

$5.$ Record the entry to close the revenue accounts.

$6.$ Record the entry to close the expense accounts.