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PR-11-12 On June 1, Rosio, Inc. pays $331,695 for land, land improvements, and a building. The land is appraised at $220,000; land improvements are appraised
PR-11-12
On June 1, Rosio, Inc. pays $331,695 for land, land improvements, and a building. The land is appraised at $220,000; land improvements are appraised at $66,000; and the building is appraised at $154,000.
REQUIREMENTS:
1. Calculate the cost that should be allocated to the
a. land
b. land improvements
c. building
2. Record the journal entry for the purchase of the land, land improvements, and building.
1a | Cost of Land | ||||
1b | Cost of Land Improvements | ||||
1c | Cost of Building | ||||
2. Journal Entry | |||||
Date | Account | Debit | Credit | ||
Show calculations.
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