Purch
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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
Transcribed Image Text:Zeidler Company bought a building and the land on which the building is located for a total cash price of $183,500. The company paid
transfer costs of $3,100. Renovation costs on the building were $14,320. An independent appraiser provided market values for the
land, $220,000, and building, $880,000 before renovation.
Required:
1. Apportion the cost of the property on the basis of the appraised values. (Input all amounts as positive values.)
Item
Building
Land
Apportioned
cost
$
No
1
0
Renovation
cost
Transaction
1
Purchase cost
2. Prepare the journal entry to record the purchase of the building and land, including all expenditures. Assume that all transactions
were for cash and that all purchases occurred at the start of the year. (If no entry is required for a transaction/event, select "No
journal entry required" in the first account field.)
View transaction list View journal entry worksheet
$
Building
Land
Cash
0
General Journal
Debit
Credit
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