On April 15,2017 Wallace Company paid cash of $620,000 for real estate plus $30,000 cash in...

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On April 15,2017 Wallace Company paid cash of $620,000 for real estate plus $30,000 cash in closing costs. The real estate include land appraised at $380,000, land improvements appraised at $80,000 and a building appraised at $250,000. REQUIRED: A. Prepare a calculation showing the allocation of the total cost among the three purchased assets B. Prepare the journal entry assuming it was purchased for cash C. Prepare the journal entry assuming $100,000 paid in cash and the balance borrowed from the bank. On April 15,2017 Wallace Company paid cash of $620,000 for real estate plus $30,000 cash in closing costs. The real estate include land appraised at $380,000, land improvements appraised at $80,000 and a building appraised at $250,000. REQUIRED: A. Prepare a calculation showing the allocation of the total cost among the three purchased assets B. Prepare the journal entry assuming it was purchased for cash C. Prepare the journal entry assuming $100,000 paid in cash and the balance borrowed from the bank.

Answer rating: 100% (QA)

A Calculation of the allocation of the total cost among the three purchased assets Total cost of rea... View the full answer