Usrey Company purchased a restaurant building, land, and equipment for $600,000 cash. The appraised value of the assets was as follows:
Land ……. $200,000
Building ….. 480,000
Equipment …. 120,000
Total ….. $800,000
a. Compute the amount to be recorded on the books for each of the assets.
b. Record the purchase in a horizontal statements model like the following one:
c. Prepare the general journal entry to record the purchase.