On January 1,2020, purchased land and a building for $150,000. The building was appraised at...
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On January 1,2020, purchased land and a building for $150,000. The building was appraised at $125,000 and the land at $25,000. Pacilio paid $50,000 cash and financed the balance. The balance was financed with a 10-year installment note. The note had an interest rate of 7% and annual payments of 14,328 due the last day of the year.
On September 1, 2020, paid the note and interest owed to State Bank.
I am having a difficult time understanding the second entry can you please explain it to the best of your ability with explanations on where we get the numbers from. Thank you
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