1. Original Banners pays $220,000 cash for a group purchase of land, building, and equipment. At the time of acquisition, the land has a market value of $34,500, the building $184,000, and the equipment $11,500. Journalize the lump-sum purchase. First, refer to the information provided and calculate the ratio of each asset's market value to the total for all assets combined. Then, complete the table and calculate the assigned cost for each asset. Total Purchase Price Assigned Cost of Each Asset Percentage Market Value of Total Value Asset Land Building Equipment Total Now, journalize the lump-sum purchase. (Record a single compound journal entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Accounts and Explanation Debit Credit Date % % % % x x x =
1. Original Banners pays $220,000 cash for a group purchase of land, building, and equipment. At the time of acquisition, the land has a market value of $34,500, the building $184,000, and the equipment $11,500. Journalize the lump-sum purchase. First, refer to the information provided and calculate the ratio of each asset's market value to the total for all assets combined. Then, complete the table and calculate the assigned cost for each asset. Total Purchase Price Assigned Cost of Each Asset Percentage Market Value of Total Value Asset Land Building Equipment Total Now, journalize the lump-sum purchase. (Record a single compound journal entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Accounts and Explanation Debit Credit Date % % % % x x x =
Chapter1: Financial Statements And Business Decisions
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Please do not give solution and formulae in image format..thanku

Transcribed Image Text:1. Original Banners pays $220,000 cash for a group purchase of land, building, and equipment. At the time of acquisition, the land has a market value of $34,500, the building $184,000, and the equipment $11,500. Journalize the lump-sum purchase.
First, refer to the information provided and calculate the ratio of each asset's market value to the total for all assets combined. Then, complete the table and calculate the assigned cost for each asset.
Total
Purchase
Price
Assigned
Cost of Each
Asset
Asset
Land
Building
Equipment
Percentage
Market Value of Total Value
%
%
%
%
X
X
X
=
=
=
Total
Now, journalize the lump-sum purchase. (Record a single compound journal entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Date
Accounts and Explanation
Debit
Credit
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