On January 1, 2019, West company acquired a tract of land for P1,000 000. West company paid P100,000 down and singed a two - year promissory note for the balance plus 10% interest compounded annually. The note matures on January 1, 2021. Required: Prepared journal entries to record: 1. Purposed of land on January 1, 2019 2. Accrued interest on December 31, 2019 3. Accrued interest on December 31, 2020 4. Full payments on the note on January 1, 2021

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On January 1, 2019, West company acquired a tract of land for Pl,000 000. West company paid
P100,000 down and singed a two - year promissory note for the balance plus 10% interest
compounded annually. The note matures on January 1, 2021.
Required: Prepared journal entries to record:
1. Purposed of land on January 1, 2019
2. Accrued interest on December 31, 2019
3. Accrued interest on December 31, 2020
4. Full payments on the note on January 1, 2021
Transcribed Image Text:On January 1, 2019, West company acquired a tract of land for Pl,000 000. West company paid P100,000 down and singed a two - year promissory note for the balance plus 10% interest compounded annually. The note matures on January 1, 2021. Required: Prepared journal entries to record: 1. Purposed of land on January 1, 2019 2. Accrued interest on December 31, 2019 3. Accrued interest on December 31, 2020 4. Full payments on the note on January 1, 2021
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