A company purchased for cash a building, land and equipment for 3.4 million. an appraisal was...
A company purchased for cash a building, land and equipment for 3.4 million. an appraisal was conducted and the building was valued at 2.5 million and land 2.0 million and equipment at 1.0 million. prepare necessary journal entry to book the purchase or the building, land and equipment
Homework Answers
Total cost = 2.5+2+1 = $5.5 million
| Accounts | Debit | Credit |
| Building (3.4*2.5/5.5) | $1545455 | |
| Land (3.4*2.0/5.5) | $1236364 | |
| Equipment (3.4*1.0/5.5) | $618181 | |
| Cash | $3400000 |
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