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klowe1129
Jun 17, 2009, 08:07 AM
Transaction: purchased land worth 54,000 for an office by paing 5,400 cash and sign a long-term note payable 48,600.

Would I put land in my journal even though the cash and note payable added together is equal to the land

pready
Jun 18, 2009, 12:01 PM
Your journal entry is:
Debit Land for 54,000
Credit Cash for 5,400
Credit Notes Payable for 48,600

Note: Your Debits and Credits should always balance