Advanced AutomotiveAdvanced Automotive paid $ 220 comma 000$220,000 for a group

Question

Advanced AutomotiveAdvanced Automotive

paid

$ 220 comma 000$220,000

for a group purchase of? land, building, and equipment. At the time of the? acquisition, the land had a market value of

$ 115 comma 000$115,000?,

the building

$ 69 comma 000$69,000?,

and the equipment

$ 46 comma 000$46,000.

Journalize the? lump-sum purchase of the three assets for a total cost of

$ 220 comma 000$220,000?,

the amount for which the business signed a note payable. ?(Record a single compound journal entry. Record debits? first, then credits. Select the explanation on the last line of the journal entry? table.)

Explanation / Answer

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Market Value Ratio to Total Markte Value Allocation 220000* Ratio Land 115000 50% 110000 Building 69000 30% 66000 Equipment 46000 20% 44000 Total 230000 220000 Journal: Account Debit Credit Land 110000 Building 66000 Equipment 44000 Note Payable 220000 (assest purchased against note payable)

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