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Stephen G.
Stephen G., Sr Financial Expert
Category: Finance
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Ihave a settlement statement purchase with a note need help

Customer Question

Ihave a settlement statement for land purchase with a note for balance
need help with JE
On statement it has
Purchase Price $ xxxx
settlement exp $ xxxx
gross amount due from buyer $ xxxx
Buyers credit:
Deposit $xxxx
purchase money mortgage xxxx
tax prorations xxxx
total credits to buyerxxxx
Net cash due from buyer:
gross amount due from buyer xxxx
total credits buyer xxxx
net cash due from buyer xxxx
Submitted: 1 year ago.
Category: Finance
Expert:  Stephen G. replied 1 year ago.

Note: This would be much easier to discuss if you used actual numbers. For example the detail of the Settlement Expenses, etc.

OK, first of all I presume that the deposit on the land was previously recorded, ie. Debit - Deposit on Land, Credit - Cash

Then to record Land Purchase from Closing Statement:

Land................................Debit xxxx

Settlement Expenses......... Debit xxxx

Deposit on Land.....................................Credit xxxx

Mortgage Payable...................................Credit xxxx

Tax Escrow............................................Credit xxxx

Cash.....................................................Credit xxxx

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