Chapter 6, Problem 6E

LO 8-1 Exercise 8-6 A Allocating costs for a basket purchase

Pitney Co. purchased an office building, land, and furniture for $500,000 cash. The appraised value of the assets was as follows:

Land	$180,000
Building	300,000
Furniture	120,000
Total	$600,000

Required

1. a. Compute the amount to be recorded on the books for each asset.
2. b. Show the purchase in a horizontal statements model like the following one:

1. c. Prepare the general journal entry to record the purchase.