Pitney Co. purchased an office building, land, and furniture for $706,300 cash. The appraised value of the assets was as follows:

Land	$	134,480
Building		245,227
Furniture		411,349
Total	$	791,056

Compute the amount to be recorded on the books for each asset. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)

	Allocated Cost
Land
Building
Furniture
Total

a. Compute the amount to be recorded on the books for each asset.

b. Show the purchase in a horizontal statements model like the following one:

PITNEY CO.

Statements Model

Assets

=

Equity

Revenue

Expenses

=

Net Income

Cash Flows

Cash

+

Land

+

Building

+

Furn.

=

c. Prepare the general journal entry to record the purchase.

Journal entry worksheet

• Record purchase of land, building and furniture for cash

Event	General Journal	Debit	Credit
1