This year, the company sold land for a non-interest bearing note….

Question Answered step-by-step This year, the company sold land for a non-interest bearing note…. This year, the company sold land for a non-interest bearing note.  The note calls for annual payments of $20,000 for 4 years.  The payments will begin one year from the date of the sale.  An appropriate rate of interest for this type of note is 5%. The land had an original purchase cost of $75,000.  The CFO told the accounting department to record the sale as follows:Notes Receivable                   $80,000            Land                                       $75,000            Gain on Sale of Land             $ 5,000             Was this entry correct? If not, provide the correct entry. Accounting Business Financial Accounting ACCOUNTING ACC 202 Share QuestionEmailCopy link Comments (0)