On June 30, 2022, Making Waves, LLC, purchased land for $400…
On June 30, 2022, Making Waves, LLC, purchased land for $400,000 and a building for $560,000, paying $360,000 cash and issuing a 5% note for the balance secured by a mortgage on the property. The terms of the note provide for 20 semi-annual payments of $30,000 on the principal plus the accrued interest from the date of the preceding payment. The journal entry to record the first installment on December 31 would include…