On 12/31/2010 (the last day of the year), the partnership purchased a new piece of land
(Redbluff ) for $3,500,000. The $3,500,000 purchase was financed via a $500,000 RECOURSE LOAN from Union Bank and a $3,000,000 QUALIFIED NONRECOURSE FINANCING from Wells Fargo Bank. The recourse loan plus one year's interest at 10% is due in full on 12/31/2011, and no interest is payable until maturity. The qualified nonrecourse loan requires quarter payments of interest only (7% annual rate) with the first quarterly interest payment of $52,500 not being due until 3/31/2011(i.e. next year). This land will be used as a larger site on which to train the dogs & cats ? I.e. it'll be used as business land.

How to journal entry it?