June 16: A company purchased a building and the land it is on for $119,000, to h

Question

June 16: A company purchased a building and the land it is on for $119,000, to house its repair facilities and to store computer equipment.. The lot on which the building is located is valued at $19,000. The balance of the cost is to be allocated to the building. The company made a cash down payment of $11,900 and executed a mortgage for the balance. The mortgage is payable in eight equal annual installments beginning July 1. I think that you are suppose to debt Land, Building Cost, Mortgage payable and credit Cash? but i'm not sure for how much?

Explanation / Answer

Land                                      $19,000
Building                                $100,000
                Cash                                               $11,900
                Mortgage Payable                           $107,100

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