Question
Recording a Lump-Sum Acquisition Freeman Company purchased a tract of land on which were located a warehouse and an office building. The cash purchase price
Recording a Lump-Sum Acquisition
Freeman Company purchased a tract of land on which were located a warehouse and an office building. The cash purchase price was $140,000 plus $10,000 in fees connected with the purchase. The following information relates to the property.
| Tax Assessment | Sellers Book Value | Original Cost | |
|---|---|---|---|
| Land | $20,000 | $10,000 | $10,000 |
| Warehouse | 40,000 | 20,000 | 60,000 |
| Building | 60,000 | 50,000 | 80,000 |
Prepare the journal entry to record this purchase.
| Account Name | Dr. | Cr. |
|---|---|---|
| Land | ||
| Warehouse | ||
| Building | ||
| Cash |
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Energy Audits And Improvements For Commercial Buildings
Authors: Ian M. Shapiro
1st Edition
1119084164, 978-1119084167
