Question
Freeman Company purchased a tract of land on which were located a warehouse and an office building. The cash purchase price was $112,000 plus $8,000
Freeman Company purchased a tract of land on which were located a warehouse and an office building. The cash purchase price was $112,000 plus $8,000 in fees connected with the purchase. The following information relates to the property.
| Tax Assessment | Sellers Book Value | Original Cost | |
|---|---|---|---|
| Land | $16,000 | $8,000 | $8,000 |
| Warehouse | 32,000 | 16,000 | 48,000 |
| Building | 48,000 | 40,000 | 64,000 |
Prepare the journal entry to record this purchase.
| Account Name | Dr. | Cr. |
|---|---|---|
| Land | ||
| Warehouse | ||
| Building | ||
| Cash |
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Financial Accounting
Authors: Michael J. Jones
2nd Edition
1119977150, 978-1119977155
