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Hernandez Carpets Company Buys a Building on a Plot of Land

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Essay

Hernandez Carpets 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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