E10-18 (similar to) Question Help Westwood Properties bought three lots in a sub

Question

E10-18 (similar to) Question Help Westwood Properties bought three lots in a subdivision for a lump-sum price. An independent appraiser valued the lots as follows ?(Click the icon to view the values.) Westwood paid $210,000 in cash. Record the purchase in the journal, identifying each lot's cost in a separate Land account. Round decimals to two places, and use the computed percentages throughout. (Recorda single compound journal entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Data Table Lot Appraised Value 1 S229,500 178,500 102,000 Print Done

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit Land Lot 1 (210000*229500/510000) 94500 Land Lot 2 (210000*178500/510000) 73500 Land Lot 3 (210000*102000/510000) 42000 Cash 210000 (To record purchasse of land)

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