Ask Question
16 July, 23:44

HighlandHighland Clothing purchased land, paying $ 96 comma 000$96,000 cash and signing a $ 300 comma 000$300,000 note payable. In addition, HighlandHighland paid delinquent property tax of $ 1 comma 100$1,100 , title insurance costing $ 600$600 , and $ 4 comma 600$4,600 to level the land and remove an unwanted building. Record the journal entry for purchase of the land.

+1
Answers (1)
  1. 16 July, 23:54
    0
    Land 404,100 debit

    Cash 104,100 credit

    Note payable 300,000 credit

    ---to record the acquisition of land.--

    Explanation:

    The land will enter the accounting as the sum of all necessary cost incurred to acquired and leave it ready to use. The delinquent property tax are part of thecost to get the land. Same is true or the insurance and removing the nwanted building. All these are required to get the land ready for use
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “HighlandHighland Clothing purchased land, paying $ 96 comma 000$96,000 cash and signing a $ 300 comma 000$300,000 note payable. In ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers