On October 17, Nickle Company purchased a building and a plot of land for $582,300. The building was valued at $302,796 while the land carried a value of $279,504. Nickle paid $56,300 down in cash and signed a note payable for the balance.
On October 17, Nickle Company purchased a building and a plot of land for $582,300. The building was valued at $302,796 while the land carried a value of $279,504. Nickle paid $56,300 down in cash and signed a note payable for the balance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On October 17, Nickle Company purchased a building and a plot of land for $582,300. The building was valued at $302,796 while the land carried a value of $279,504. Nickle paid $56,300 down in cash and signed a note payable for the balance.
Required:
| Provide the journal entry for this transaction. Refer to the Chart of Accounts for exact wording of account titles. |
CHART OF ACCOUNTSNickle CompanyGeneral Ledger
| ASSETS | |
| 11 | Cash |
| 12 | |
| 13 | Supplies |
| 14 | Prepaid Insurance |
| 15 | Land |
| 16 | Office Equipment |
| 17 | Building |
| 18 | Truck |
| LIABILITIES | |
| 21 | Notes Payable |
| 22 | Accounts Payable |
| 23 | Unearned Revenue |
| EQUITY | |
| 31 | Marlene Nickle, Capital |
| 32 | Marlene Nickle, Drawing |
| REVENUE | |
| 41 | Fees Earned |
| EXPENSES | |
| 51 | Wages Expense |
| 53 | Rent Expense |
| 54 | Utilities Expense |
| 55 | Maintenance Expense |
| 59 | Miscellaneous Expense |
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