Question

Clothing purchased​ land, paying $ 110 comma 000 cash and signing a $ 250 comma 000 note payable. In​ addition, Alpine paid delinquent property tax of $ 1 comma 100​, title insurance costing $ 1 comma 550​, and $ 5 comma 900 to level the land and remove an unwanted building. Record the journal entry for purchase of the land.

Answer 1

Answer:

Explanation:

The journal entry is shown below:

Land A/c Dr

         To Cash A/c

         To Note payable A/c $250,000

(Being the purchase of the land is recorded)

The computation is shown below:

The cash would be

= Cash paid + delinquent property tax paid + title insurance cost + emove an unwanted building cost

= $110,000 + $1,100 + $1,550 + $5,900

= $118,550