Tonys favorite memories of his childhood were the times he spent with his dad at...
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Tonys favorite memories of his childhood were the times he spent with his dad at camp. Tony was daydreaming of those days a bit as he and Suzie jogged along a nature trail and came across a wonderful piece of property for sale. He turned to Suzie and said, Ive always wanted to start a camp where families could get away and spend some quality time together. If we just had the money, I know this would be the perfect place. On November 1, 2022, Great Adventures purchased the land by issuing a $540,000, 6%, 10-year installment note to the seller. Payments of $5,995 are required at the end of each month over the life of the 10-year loan. Each monthly payment of $5,995 includes both interest expense and principal payments (i.e., reduction of the loan amount). Record the first monthly payment on the long-term note payable, made on November 30, 2022.
Record the second monthly payment on the long-term note payable, made on December 31, 2022.
The 12 monthly payments in 2023 (following year) will reduce the note's balance by an additional $41,054. Record the reclassification of this amount from long-term notes payable to current notes payable.
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