On October 17th, Nikle Company Purchased a Building and a Plot

question 34

Essay

On October 17th, Nikle Company purchased a building and a plot of land for $750,000. The building was valued at $500,000 while the land carried a value of $250,000. Nikle paid $300,000 down in cash and signed a note payable for the balance. Prepare the journal entry to record this transaction.

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Definitions:

Opportunity Cost

The cost of foregoing the next best alternative when making a decision.

Baseballs

Spherical balls used in the game of baseball, crafted from cork and rubber, and covered with stitched leather.

Bananas

A type of edible fruit that is elongated and curved, with soft flesh rich in starch covered by a rind, which may be green, yellow, or brown when ripe.

True Value

The actual, inherent worth of an asset, commodity, or transaction, as opposed to its market price or cost of production.