2. Hari Enterprises purchased equipment by making a $2,000 cash down payment and signing a $23,000, one-year, 10% note payable. The purchase was recorded as follows: Equipment 27,300 Cash 2,000 Notes 23,000 Payable Interest Payable 2,300 3. Kim Company purchased equipment for $20,000, terms 2/10, n/30. Because the company intended to take the discount, it made no entry until it paid for the acquisition. The entry was: Equipment Cash 20,000 19,600 Purchase Discounts 400 4. 5. Kaiser Inc. recently received land at zero cost from the Village of Chester as an inducement to locate its business in the village. The land's appraised value was $27,000. The company made no entry to record the land because it had no cost basis. Zimmerman Company built a warehouse for $600,000. It could have contracted out and purchased the building for $740,000. The controller made the following entry: Buildings Cash Sales Revenue 740,000 600,000 140.000 (a) Your answer is partially correct. Prepare the entry that should have been made at the date of each acquisition. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts List all debit entries before credit entries. Do not round intermediate calculations. Round final answers to 0 decimal places, eg. 5.275.) No. Account Titles and Explanation 1. Land Buildines Buildings-Roof Equipment Cash 2. Equipment Cash Notes Payable 3. Equipment Debit 131250 260312.50 45937.50 25000 19600 Credit: 262500 700000 2000 23000 Question 5 of 5 (b) 3. Equipment Accounts Payable 19600 4. Land 27000 Revenue-Government Grantsv 5. Building Cash eTextbook and Media Solution 19600 27000 600000 600000 2.32/5 1 Attempts: 1 of 1 used Prepare the correcting entry that is required in each case to correct the accounts. In other words, do not simply reverse the incorrect entry and replace it with the entry in the part above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Do not round intermediate calculations. Round final answers to O decimal places, eg. 5.275) No. Account Titles and Explanation I Debit Credit