Question

In Motion Upper T minus ShirtsIn Motion T−Shirts paid $ 200 comma 000$200,000 for a group purchase of​ land, building, and equipment. At the time of the​ acquisition, the land had a market value of $ 105 comma 000$105,000​, the building $ 84 comma 000$84,000​, and the equipment $ 21 comma 000$21,000. Journalize the​ lump-sum purchase of the three assets for a total cost of $ 200 comma 000$200,000​, the amount for which the business signed a note payable. ​(Record a single compound journal entry. Record debits​ first, then credits. Select the explanation on the last line of the journal entry​ table.)

Then,

On JanuaryJanuary ​2,20162016​,Royal PetRoyal Pet purchased fixtures for $ 53 comma 000$53,000 ​cash, expecting the fixtures to remain in service for tenten years. Royal PetRoyal Pet has depreciated the fixtures on a​ straight-line basis, with $ 2 comma 000$2,000 residual value. On August 31​,2018, Royal PetRoyal Pet sold the fixtures for $ 33 comma 400$33,400 cash. Record both depreciation expense for 2018and sale of the fixtures on August 31​, 2018 . ​(Assume the modified​ half-month convention is used. Record debits​ first, then credits. Select the explanation on the last line of the journal entry​ table.)

Answer 1

Shirts In Motion

Date	General Journal	Debit	Credit
	Land	100000
	Building	80000
	Equipment	20000
	Notes payable		200000
	(To record lump-sum purchase of assets)

Working:

Asset	Market Value $	Percent of total market value	Lumpsum Purchase Price $	Allocated Price $
Land	105000	50%	200000	100000
Building	84000	40%	200000	80000
Equipment	21000	10%	200000	20000
Total	210000	100%		200000

Per Chegg guidelines, the first question has been answered. Please post the remaining independent question separately. Thank you.