Exercise 10-3 Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $36

Question

Exercise 10-3 Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $365,000 for real estate plus $19.345 in closing costs. The real estate consists of land appraised at $235.000, land improvements appraised at $47000; and a building appraised at $188000 ints the total cost among the three purchased assets 2 Prepare the journal entry to record the purchase Complete this question by entering your answers in the tabs below Prepare the journal entry to record the purchase. (Round your answers to 2 decimal places Journal entry worksheet Record the costs of lump sum purchase.

Explanation / Answer

Appraised Value Percent of Total Appraised Value x Total Cost of Acquisition Apportioned Cost Land 235000 50% 384345 192172.50 Land improvements 47,000 10% 384345 38434.50 Building 1,88,000 40% 384345 153738.00 Totals 470000 100% 384345.00 2 Transaction General Journal Debit Credit 1 Land 1,92,172.50 Land improvements 38,434.50 Building 1,53,738.00 Cash 3,84,345.00

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