1
Required:
Record the purchase of the building on January 1, 2021.

1 Answer

2

Answer:

Dr Building $338,000

Cr Cash $58,000

Cr Notes Payable $280,000

Explanation:

Preparation of the journal entry to Record the purchase of the building on January 1, 2021.

Based on the information given we were told that Gundy purchases an office building for the amount of $338,000 which means that if they paid $58,000 down and as well borrowed the remaining amount of $280,000 the journal entry to Record the purchase of the building on January 1, 2021 will be :

Dr Building $338,000

Cr Cash $58,000

Cr Notes Payable $280,000

(Being purchase of building)

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Trisha D'Amore
15.5k 3 10 26
answered 10 months ago