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9 September, 13:50

On December 31 of the current year, Jones Company purchased a building for $100,000, paying $40,000 in cash and signing a 15-year mortgage for the $60,000, taken out at 5% interest. The journal entry to record the purchase of the building would be:

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  1. 9 September, 15:45
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    These are the correct journal entries:

    Account Debit Credit

    Building $100,000

    Cash $40,000

    Mortgage Payable $60,000

    Interest Expense $3,000

    Accrued Interest Payable $3,000
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