Answer:
a. Debit Land accounts $6,492,240
Credit Cash account $6,492,240
Being entries to record the purchase of land
and for the payment and installation of machinery,
b. Debit Machinery account (fixed asset) $1,280,160
Credit Cash accounts $1,280,160
Being entries to record the purchase and installation of machinery
Explanation:
When an asset is purchased with cash, the entries required are debit asset and credit cash. Such asset includes land, equipment, building, mines, inventory etc.
As such to record the purchase of a land,
Debit Land accounts
Credit Cash account
and for the payment and installation of machinery,
Debit Machinery account (fixed asset)
Credit Cash accounts
