Farrell, Inc. purchased land for $88,000 by signing a note payable for the same amount. Additionally, Farrell paid cash for the following: title insurance of $1,300, a commission of $8,800, $5,000 to remove an unwanted building, $4,000 to level and grade the property, $18,000 for paving, $23,000 to construct a fence around the perimeter, and $5,800 for lighting. The journal entry for the cash payment is: 

A.debit land $10,100, debit land improvement $55,800, credit cash $65,900 

B.debit land $107,100, debit land improvement $46,800, credit cash $153,900 

C.debit land $19,100, debit land improvement $46,800, credit cash $65,900 

D.debit land $98,100, debit land improvement $55,800, credit cash

Answer rating: 100% (QA)

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