Rodriguez Company pays $345,000 for real estate plus $18,285 in closing costs. T

Question

Rodriguez Company pays $345,000 for real estate plus $18,285 in closing costs. The real estate consists of land appraised at $202,500; land improvements appraised at $90,000; and a building appraised at $157,500.

Required information

Journal Entry Worksheet

Record the costs of lump-sum purchase.

Rodriguez Company pays $345,000 for real estate plus $18,285 in closing costs. The real estate consists of land appraised at $202,500; land improvements appraised at $90,000; and a building appraised at $157,500.

Explanation / Answer

340000 345000 18020 18285 204000 202500 90000 255000 157500 Land 202500 45% Land & Improvement 90000 20% Building 157500 35% 450000 Apportioned Cost Land 363285*45% 163478.3 Land & Improvement 363285*20% 72657 Building 363285*35% 127149.8 Total 363285 Purchase Price = 363285 Land & Building 363285 To Cash 363285

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