What is the general journal entry for this transaction: "Paid cash to purchase a building and land on January 2, Year 3, for a total cost of $100,000. The land was appraised at $43,750 and the building was appraised at $131,250."

What is the general journal entry for this transaction: "Paid cash to purchase a building and land on January 2, Year 3, for a total cost of $100,000. The land was appraised at $43,750 and the building was appraised at $131,250."

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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What is the general journal entry for this transaction:

"Paid cash to purchase a building and land on January 2, Year 3, for a total cost of $100,000. The land was appraised at $43,750 and the building was appraised at $131,250."

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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