Pitney Co. purchased an office building, land, and furniture for $776,300 cash.
ID: 2510750 • Letter: P
Question
Pitney Co. purchased an office building, land, and furniture for $776,300 cash. The appraised value of the assets was as follows:
Record the purchase in a horizontal statements model like the following one: (Do not round intermediate calculations. Round your final answers to nearest whole dollar. In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA for not affected. Enter any decreases to account balances with a minus sign.)
Prepare the general journal entry to record the purchase. (Do not round intermediate calculations. Round your final answers to nearest whole dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
record purchase of land, building, and furniture for cash
Pitney Co. purchased an office building, land, and furniture for $776,300 cash. The appraised value of the assets was as follows:
Explanation / Answer
Answer
A. The amount to be recorded on the books for each asset:
B.The purchase in a horizontal statements model like the following one:
b) Horizontal analysis :
C. The general journal entry to record the purchase
Particulars Allocated cost Land ($776,300*139,113/869,456) $124208 Building ($776,300*269,531/869,456) $240653 Furniture ($776,300*460,812/869,456) $411439 Total $776300