Score: 0 of 1 pt 10f 1,0 complete)? Hw Score: 0%, 0 of 1 pt E9-18 (similar to) E

Question

Score: 0 of 1 pt 10f 1,0 complete)? Hw Score: 0%, 0 of 1 pt E9-18 (similar to) EQuestion Help Eastwood Properties bought three lots in a subdivision for a lump-sum price. An independent appraiser valued the lots as tollows E (Click the icom to view the values) Eastwood paid $355,000 in cash Recond the purchase in the journal, identifying each lot's cost in a separate Land account. Round decimals to two places, and use the computed pencentages throughout. (Recond a single compound joumal entry Record debits Srst, then credits. Select the explanation on the last ine of the joumal entry table Date Accounts and Explanation Debit Credit Data Table Lot Appraised Value S216,000 144,000 20,000 Print Done Choose from any lst or enter any umber in the input felds and then click Check Answer

Explanation / Answer

note:

allocation of purchase price to lots.

total of appraised value of all the lots => $216,000 +$144,000 +$120,000 =>$480,000.

The following is the journal entry:

appraised value purchase price allocated Lot 1 ($216,000 ($216,000/480,000)*355,000 =>$159,750 Lot 2 $144,000 ($144,000/480,000)*355,000=>$106,500 Lot 3 $120,000 ($120,000/480,000)*355,000=>$88,750 $480,000 $355,000

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