On January 1, 2017, Alberta Company purchased land and a building for $1,120,000. At the time of the purchase, it was estimated that the building had a market value of $700,000. On January 5, Alberta installed a fence around the property at a cost of $7,000. Given this information, the journal entry to record the purchase of the land and building would include a a.debit to land for $700,000. b.debit to land for $427,000. c.debit to land for $420,000. d.debit to land for $413,000.
On January 1, 2017, Alberta Company purchased land and a building for $1,120,000. At the time of the purchase, it was estimated that the building had a market value of $700,000. On January 5, Alberta installed a fence around the property at a cost of $7,000. Given this information, the journal entry to record the purchase of the land and building would include a a.debit to land for $700,000. b.debit to land for $427,000. c.debit to land for $420,000. d.debit to land for $413,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2017, Alberta Company purchased land and a building for $1,120,000. At the time of the purchase, it was estimated that the building had a market value of $700,000. On January 5, Alberta installed a fence around the property at a cost of $7,000. Given this information, the
a.debit to land for $700,000.
b.debit to land for $427,000.
c.debit to land for $420,000.
d.debit to land for $413,000.
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