On October 17, Nikle Company purchased a building and a plot of land for $589,200. The building was valued at $312,276 while the land carried a value of $276,924. Nikle paid $61,900 down in cash and signed a note payable for the balance.

Required:

Provide the journal entry for this transaction. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS

Nikle Company

General Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Supplies
14	Prepaid Insurance
15	Land
16	Office Equipment
17	Building
18	Truck

	LIABILITIES
21	Accounts Payable
22	Unearned Revenue
23	Notes Payable

	EQUITY
31	Common Stock
32	Retained Earnings
33	Dividends

	REVENUE
41	Fees Earned

	EXPENSES
51	Wages Expense
53	Rent Expense
54	Utilities Expense
55	Maintenance Expense
59	Miscellaneous Expense

X

General Journal

Provide the journal entry for the purchase of building and land with cash down payment on October 17. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4

Provide the journal entry for the purchase of building and land with cash down payment on October 17. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4