Garotia Company Buys a Building on a Plot of Land

question 87

Essay

Garotia Company buys a building on a plot of land for $115,000, paying $30,000 cash and signing a 30-year mortgage note for $85,000 at 11%. The payment will be made in equal monthly installments of $809. Provide the journal entry for the first monthly payment. (Round your answers to nearest whole dollar number).

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Definitions:

Nonsteroidal Anti-inflammatory Drug

Medications that reduce pain, decrease fever, and, in higher doses, lower inflammation.

Health Care Provider

A person or organization that offers medical or therapeutic services to individuals or communities.

Analgesics

Medications designed to relieve pain without causing the loss of consciousness, often over-the-counter or prescription drugs.

Intensive Care Unit

A specialized department in a hospital that provides comprehensive and continuous care for patients who are critically ill or require life support.