Pitney Co. purchased an office building, land, and furniture for $500,000 cash. The appraised value of the
Question:
Pitney Co. purchased an office building, land, and furniture for $500,000 cash. The appraised value of the assets was as follows:
Land ........$180,000
Building ..... 300,000
Furniture ..... 120,000
Total .......$600,000
Required
a. Compute the amount to be recorded on the books for each asset.
b. Record the purchase in a horizontal statements model like the following one:
c. Prepare the general journal entry to record the purchase.
Transcribed Image Text:
Assets Liab. + Equity Rev.-Exp. = Net Inc.||| Cash Flow Cash Land + BuildingFurn.
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a Asset Appraised Value Percent of Appraised Value Purchase Price Allocated Cost Land 18...View the full answer
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Related Book For
Fundamental Financial Accounting Concepts
ISBN: 978-0078025907
9th edition
Authors: Thomas Edmonds, Christopher Edmonds
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