Question

12:47 11 LTE O mathxl.com C Acct 210 DA Introduction to Financial Accounting MW 11:20-12:50 Ndayisenga Emmanuel & 11/12/19 12:47 PM Homework: HW 9/11 due 9/13 Save 1 of 8 (0 complete) HW Score: 0%, 0 of 8 pts Score: 0 of 1 pt S9-1 (similar to) Question Help Highland Clothing purchased land, paying $118,000 cash and signing a $270,000 note payable. In addition, Highland paid delinquent property tax of $1,600, title insurance costing $900, and $6.200 to level the land and remove an unwanted building. Record the journal entry for purchase of the land, Begin by determining the cost of the land. Purchase price of land Add related costs Total cost of land

Answer 1

Computation of total cost of the land
Particulars	Amount	Amount
Purchase price		$388,000
Add: Related costs
Property taxes	$1,600
Insurance	$900
Cost of removal of the building	$6200	$8700
The total cost of the land		$396,700

Date	Accounts and explanation	Debit	Credit
	Land	396,700
	Cash		126,700
	Notes payable		270,000
	(To record purchase of land with cash and notes payable)