Chapter 3
Long-Term Assets
132
AP-18B (
2
)
Patterson Inc. purchased land, land improvements and a building on May 15, 2016 from
StarGen Inc. The appraised values of the assets were $740,000 for land, $100,000 for land
improvements and $160,000 for the building. Patterson Inc. paid $530,000 in cash and signed
a note payable for the remaining balance of $370,000.
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
