Final answer:
The $15,000 on the closing statement would be entered as an installment note receivable for the seller and as an installment note payable for the buyer. The closing statement reflects the amount the buyer agrees to pay over time for the home purchase.
Step-by-step explanation:
When a homeowner sells their home and agrees to finance a portion of the purchase price on an installment note, in this case, $15,000, this amount will appear on the closing statement as a note receivable for the seller and a note payable for the buyer. The closing statement reflects the final financial transaction details and the installment note represents an agreement for the buyer to pay the seller the agreed-upon amount plus any applicable interest over a specified period.
Looking at other examples for context, home equity is calculated as the market value of a house minus any outstanding debts owed on the property. For instance, if Frank's house is worth $160,000 and he owes $60,000 to the bank, his equity would be $100,000. In the case of Freda, she bought a house for $150,000 in cash, and it is now worth $250,000, giving her full equity of $250,000 because she owes nothing to the bank.