Pitney Co. purchased an office building, land, and furniture for $500,000 cash. The appraised value of the assets was as follows:
Land …….. $180,000
Building ….. 300,000
Furniture ….. 120,000
Total ……. $600,000
a. Compute the amount to be recorded on the books for each asset.
b. Record the purchase in a horizontal statements model like the following one:
c. Prepare the general journal entry to record the purchase.