AccountingBLOCK

boolean · 04-06-2008, 12:17 AM

Can anyone help me with this transaction? Do not know how to record it in the general journal, i.e. what gets debited/credited (step-by-step).

A company purchased 1) a building for $3,200 and 2) land for $2,700 and paid for all of these 1) by cash in the amount of 4,100 and 2) by taking a 10-year mortgage in the amount of 1,800.

bizark · 04-06-2008, 12:19 AM

hmmm

Dr. Building
Cr. Cash

Dr. Land
Cr. Cash

Dr Cash
Cr. Mortgage Payable

04-23-2008, 11:40 PM

HI I THINK SO IT SHOULD LIKE THIS
DR asset(building+land)
CR bank
mortgage payable

as u don`t know that how one is going to sort out the payments

Quote:

Originally Posted by boolean

Can anyone help me with this transaction? Do not know how to record it in the general journal, i.e. what gets debited/credited (step-by-step).

A company purchased 1) a building for $3,200 and 2) land for $2,700 and paid for all of these 1) by cash in the amount of 4,100 and 2) by taking a 10-year mortgage in the amount of 1,800.

04-06-2008, 12:17 AM	#1 (permalink)
boolean Status: n00b Join Date: Mar 2008 Location: Florida Posts: 15 Credits: 245	Purchase of two different assets Can anyone help me with this transaction? Do not know how to record it in the general journal, i.e. what gets debited/credited (step-by-step). A company purchased 1) a building for $3,200 and 2) land for $2,700 and paid for all of these 1) by cash in the amount of 4,100 and 2) by taking a 10-year mortgage in the amount of 1,800.

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04-06-2008, 12:19 AM	#2 (permalink)
bizark Status: Getting feet wet Join Date: Mar 2008 Location: USA Posts: 39 Credits: 623	hmmm Dr. Building Cr. Cash Dr. Land Cr. Cash Dr Cash Cr. Mortgage Payable

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