Respuesta :
Answer:
Land $30,000
building $240,000
Equipment $30,000
To Cash $300,000
(Being the lump sum purchase is recorded)
Explanation:
For journalizing the lump sum purchase entry first we need to compute the allocated cost assigned to each asset which is shown below
(A) (B) (A × B)
Asset Market value Percentage of total value Purchase price Assigned value
Land $33,000 10% $300,000 $30,000
Building $264,000 80% $300,000 $240,000
Equipment $33,000 10% $300,000 $30,000
Total value $330,000
Now the journal entry is
Land $30,000
building $240,000
Equipment $30,000
To Cash $300,000
(Being the lump sum purchase is recorded)
We simply debited the assets as it increased the asset account and at the same time the cash is paid so it decreased the asset account
