Keenum Company purchased a restaurant building, land, and equipment for $900,000. Keenum paid $100,000 in cash and

Question:

Keenum Company purchased a restaurant building, land, and equipment for $900,000. Keenum paid $100,000 in cash and issued a 20-year, 8 percent note to First Bank for the balance. The appraised value of the assets was as follows.
Land $ 240,000
Building 600,000
Equipment 360,000
Total $1,200,000
Required
a. Compute the amount to be recorded on the books for each of the assets.
b. Record the purchase in a horizontal statements model like the followingone.