Yell Company Made a Lump Sum Purchase of an Office

question 60

Essay

Yell Company made a lump sum purchase of an office building,including the land and some fixtures,for cash of $160,000.The tax assessments for the past year reflected the following: Land,$22,500; Building,$58,500; and Fixtures,$9,000.Complete the following entry for the acquisition:

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Definitions:

Journalizing

The entering of transaction data in the journal.

Trial Balance

A bookkeeping worksheet listing the balances in each ledger account, used to verify that the sum of debits equals the sum of credits.

Credit Side

The side of an accounting ledger where increases in liabilities, equity, and revenue, or decreases in assets and expenses are recorded.

Debit Side

The left side of an accounting ledger where debits are recorded, typically indicating increases in assets or expenses and decreases in liabilities or equity.