BigShow
10-24-2004, 02:36 PM
The question was:
On March 13, 2004, Seaside Sales purchased land and a building for a total price of $510,000, paying cash of $60,000 and borrowing the balance from the bank to be repaid within 8 years. The bank appraised the land at $294,000 and the building at $196,000.
I am asked to record the purchases to the general journal and According to the solution:
The Land account should be debited for the amount of $306,000
&
The Building account should be debited for the amount of $204,000
and the cash and Long-Term Notes Payable should be credited.
What I don't understand is where they get the numbers of $306,000 and $204,000.
Can anyone help?
On March 13, 2004, Seaside Sales purchased land and a building for a total price of $510,000, paying cash of $60,000 and borrowing the balance from the bank to be repaid within 8 years. The bank appraised the land at $294,000 and the building at $196,000.
I am asked to record the purchases to the general journal and According to the solution:
The Land account should be debited for the amount of $306,000
&
The Building account should be debited for the amount of $204,000
and the cash and Long-Term Notes Payable should be credited.
What I don't understand is where they get the numbers of $306,000 and $204,000.
Can anyone help?