LO 2Cash +LandAssets+Exercise 8-6A Allocating costs for a basket purchaseJourdan Company purchased a restaurant building, land, and equipment for $700,000 cash. Theappraised value of the assets was as follows:LandBuildingEquipmentTotalBuilding + Equip.Requireda. 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 following one.$160,000400,000240,000$800,000= Liab. + Equity Rev.Exp.c. Prepare the general journal entry to record the purchase.= Net Inc.Cash Flow

The process of evaluating the value of an asset is referred to as the appraisal methodology, and it…

Cash LO 2 + Assets Exercise 8-6A Allocating costs for a basket purchase Jourdan Company purchased a restaurant building, land, and equipment for $700,000 cash. The appraised value of the assets was as follows: Land + Building + Equip. Land Building Equipment Total 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 following one. = Liab. $160,000 400,000 240,000 $800,000 + Equity Rev. Exp. = Net Inc. Cash Flow

Cash LO 2 + Assets Exercise 8-6A Allocating costs for a basket purchase Jourdan Company purchased a restaurant building, land, and equipment for $700,000 cash. The appraised value of the assets was as follows: Land + Building + Equip. Land Building Equipment Total 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 following one. = Liab. $160,000 400,000 240,000 $800,000 + Equity Rev. Exp. = Net Inc. Cash Flow

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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