Question

Question 3 of 3 - / 10 View Policies Current Attempt in Progress Sunland Company purchased land, a building, and equipment on January 2, 2021, for $895,000. The company paid $160,000 cash and signed a mortgage note payable for the remainder. Management's best estimate of the value of the land was $370,000; of the building, $416,250; and of the equipment, $138,750. Record the purchase. (Use Mortgage Payable for account.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 2 Land 370.000 Building 416,250 Equipment 138,750 160.000 Cash 735,000 Mortgage Payable (To record purchase of property.) List of Accounts Submit Answer Attempts: 0 of 1 used Save for Later Last saved 2 minutes ago Saved work will be auto-submitted on the due date.

Answer 1

Answer

· Working

Allocation of Total Cost	Appraised Value	% of total appraised value	Total cost of acquisition	Apportioned Cost
Land	$                           370,000.00	40.0%	$                   895,000.00	$                                      358,000.00
Building	$                           416,250.00	45.0%	$                   895,000.00	$                                      402,750.00
Equipment	$                           138,750.00	15.0%	$                   895,000.00	$                                      134,250.00
Total	$                           925,000.00	100%		$                                      895,000.00

· Journal entry asked

Date	Accounts title	Debit	Credit
Jan-02	Land	$             358,000.00
	Building	$             402,750.00
	Equipment	$             134,250.00
	Cash		$                   160,000.00
	Mortgage payable		$ 735,000.00
	(lumpsum purchases recorded)