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Required information

E$8-3($Algo$)$ Computing and Recording Cost and Depreciation of Assets $($Straight$-$Line Depreciation$)$ LO$8-$

$2,8-3$

$[$The following information applies to the questions displayed below.$]$

Shahia Company bought a building for $$79,000$ cash and the land on which it was located for $$109,000$ cash. The

company paid transfer costs of $$17,000($ $$7,000$ for the building and $$10,000$ for the land$).$ Renovation costs on the

building before it could be used were $$18,000.$

E$8-3$ Part $1$

Required:

Prepare the journal entry to record the purchase of the property, including all relevant expenditures. Assume that all transactions

were for cash and that all purchases occurred at the start of the year.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.