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Question - On January 1, 2021, Jalen Company purchased land costing $800,000. Instead of paying cash at the time of purchase, Jalen plans to make four installment payments of $215,221.64 on June 30 and December 31 in 2021 and 2022. The payments include interest at a rate of 6%.
Required -
1. Record the purchase of land when the note is issued.
2. Record the first installment payment on June 30, 2021, and the second installment payment on December 31, 2021.
3. Calculate the balance of Notes Payable and Interest Expense on December 31, 2021.
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