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On October 17, Nickle Company purchased a building and a plot of land for $750,000. The building was valued at $500,000 while the land carried a value of $250,000. Nickle paid $300,000 down in cash and signed a note payable for the balance.
Prepare the journal entry for this transaction.

Respuesta :

Answer:

Please see the explanation for the journal entry

Explanation:

The journal entry that would be passed for the transaction on October 17, By Nickle company is as follows:

Building                          Dr. $500000

Land                              Dr. $250000

Cash                                                 Cr. $300000

Notes Payable                                  Cr. $450000

The value of land and building are taken separately and cash and notes payable would be credited.

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