On January 1, 2018, JKJ purchased a 1,000 acre farm with a building. The asking price was $2,600,000. Approximately 15 percent of the total value of the farm was allocable to the building and the balance of the purchase to ranch improvements. Payment in full was made as follows: Cash, $980,084, 50,000 shares LR common shares (market $25 per share based on several recent large market exchanges) and a $500,000 non-interest-bearing note payable in full on December 31, 2020

Give the journal entry for JKJ to record this purchase (rounded to the nearest dollar).

Answer rating: 100% (QA)

General Journal Date Account Titles and Explanation Debit Credit 1Jan2018 Building 2... View the full answer