Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,330,000 Harding paid $315,000 and issued a note payable for
Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,330,000 Harding paid $315,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $333,000, Building, $990,000 and Equipment, $657,000 What journal entry would be used to record the purchase of the above assets? (Do not round intermediate calculations.) Multiple Choice Land Building Equipment Cash Land Building Equipment Account Title Debit 330,000 990,000 650,000 Credit 2,010,000 Cash Notes payable Account Title Debit 330,000 Credit 990,000 650,000 315,000- Account Title Credit Land Building 223,662 645,000 Equipment 441,318 Cash Land Building Equipment Cash Account Title Debit 330,000 Credit 990,000 690,000 2,010,000 Account Title Land Debit 330,000 Credit Building 990,000 Equipment 690,000 Cash Notes payable 315,000 1,695,000 Land Building Equipment Cash Notes payable Account Title Debit 223,682 Credit 665,000 441,318 315,000 1,015,000 Account Title Land: Building Debit 330,000 990,000 Credit Equipment 690,000 Cash Notes payable 315,000 1,015,000 Gain on purchase of long-term assets 680,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started