Clawson

Clothing purchased land, paying

$118,000

cash plus a

$260,000

note payable. In addition,

Clawson

paid delinquent property tax of

$1,700,

title insurance costing

$900,

and

$5,200

to level the land and remove an unwanted building. Record the journal entry for purchase of the land.

Begin by determining the cost of the land.

Purchase price of land
Add related costs:
Total cost of land

Record the journal entry for purchase of the land. (Record a single compound journal entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table. Check your spelling carefully and do not abbreviate.)

Date			Accounts and Explanation	Debit	Credit