Chapter 3
Long-Term Assets
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AP-18A (
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On September 8, 2016, Swanson Corporation purchased the following assets: land, machinery
and a building. The appraised values of the assets were $1,000,000 for land, $200,000 for
machinery and $800,000 for the building. The total purchase price of all three assets was
$1,700,000. Swanson paid cash of $365,400 and signed a note payable for the remaining
balance.
Required
a) Complete the table to determine the cost of the assets.
Item
Appraised
Percent
Applied to Cost
b) Prepare the journal entry to record the purchase.
Date
Account Title and Explanation
Debit
Credit
