Pitney Co. purchased an office building, land, and furniture for $500,000 cash. The appraised value of the

Question:

Pitney Co. purchased an office building, land, and furniture for $500,000 cash. The appraised value of the assets was as follows:

Land ........$180,000

Building ..... 300,000

Furniture ..... 120,000

Total .......$600,000

Required

a. Compute the amount to be recorded on the books for each asset.

b. Record the purchase in a horizontal statements model like the following one:

Pitney Co. purchased an office building, land, and furniture for

c. Prepare the general journal entry to record the purchase.

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Fundamental Financial Accounting Concepts

ISBN: 978-0078025907

9th edition

Authors: Thomas Edmonds, Christopher Edmonds

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Question Posted: Apr 20, 2015 07:29 AM

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Pitney Co. purchased an office building, land, and furniture for $500,000 cash. The appraised value of the

Question:

Assets Liab. + Equity Rev.-Exp. = Net Inc.||| Cash Flow Cash Land + BuildingFurn.

Step by Step Answer:

a Asset Appraised Value Percent of Appraised Value Purchase Price Allocated Cost Land 18...View the full answer

Fundamental Financial Accounting Concepts

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