Question
Freeman Company purchased a tract of land on which were located a warehouse and an office building. The cash purchase price was $364,000 plus $26,000
Freeman Company purchased a tract of land on which were located a warehouse and an office building. The cash purchase price was $364,000 plus $26,000 in fees connected with the purchase. The following information relates to the property.
| Tax Assessment | Sellers Book Value | Original Cost | |
|---|---|---|---|
| Land | $52,000 | $26,000 | $26,000 |
| Warehouse | 104,000 | 52,000 | 156,000 |
| Building | 156,000 | 130,000 | 208,000 |
Prepare the journal entry to record this purchase.
| Account Name | Dr. | Cr. |
|---|---|---|
| Land | Answer | Answer |
| Warehouse | Answer | Answer |
| Building | Answer | Answer |
| Cash | Answer | Answer |
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Strategic Accounting For Management
Authors: Bob Ryan
1st Edition
1861524625, 9781861524621
