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

question 215

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 notes payable for the balance. In the space below write the journal entry.

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Definitions:

Land Costing

The total expenditure associated with acquiring land, including purchase price, closing costs, and preparation expenses.

IFRS

International Financial Reporting Standards, a set of accounting standards providing global framework for preparing financial statements.

Bank Overdrafts

Occurs when withdrawals from a bank account exceed the available balance, creating a negative balance.

Bonds Payable

A long-term debt instrument issued by a corporation or government, representing a promise to pay a specified sum of money at a future date along with periodic interest payments.