Paris Company Buys a Building on a Plot of Land $$\begin{array} { | l | l | l | } \hline \quad\quad& \quad&\quad \\\hline & & \\\hline & & \\\hline & & \\\hline\end{array}$$

question 12

Essay

Paris Company buys a building on a plot of land for $100,000,paying $20,000 cash and signing a 20-year mortgage note for $80,000 at 6%.An appraisal shows the value of the building to be $70,000 and the value of the land to be $30,000.Please provide the journal entry for the purchase.
$$\begin{array} { | l | l | l | } \hline \quad\quad& \quad&\quad \\\hline & & \\\hline & & \\\hline & & \\\hline\end{array}$$

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Definitions:

Dividends

Profits distributed by a corporation to its shareholders, usually in the form of cash or additional stock.

Common Stock

Common stock represents shares of ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends, albeit with lower priority than preferred stock in dividend payment and asset liquidation.

Market Price

The current price at which an asset or service can be bought or sold in a public market, determined by the supply and demand dynamics.

Unrealized Increase

An increase in the value of an asset or investment that has not been sold or exchanged, meaning the gain is not yet reflected in income.