Chapter 3
Long-Term Assets
92
Application Questions Group A
AP-1A (
2
)
Prepare the journal entry for the purchase of machinery worth $200,000 (on credit) on
March 6, 2016.
Date
Account Title and Explanation
Debit
Credit
AP-2A (
3
)
Prepare the journal entry to record depreciation of $2,000 for a long-term asset on
February 29, 2016.
Date
Account Title and Explanation
Debit
Credit
AP-3A (
2
)
Land, building and equipment were purchased for a total amount of $800,000 on May 25,
2016. The assessed values of these purchases were, Land—$600,000; Building—$300,000;
Equipment—$100,000. Calculate the cost of each asset by filling in the following table, and
write the journal entry that records the purchase.
Item
Assessment
Percent
Applied to Cost
