On August 2 2016 Alpha Company made a lump sum purchase of l

On August 2, 2016, Alpha Company made a lump sum purchase of land, building, and equipment. The following were the appraised values of each element: PP&E; Element Amount $10,000 20,000 30,000 Land Building Equipment Alpha signed a 3 years, 596, note in the amount of $72,000 for the lump sum purchase. Use this information to prepare the General Journal entry (without explanation) for August 2. If no entry is required then write \"No Entry Required.\"

Solution

Journal entry :

Date	account & explanation	debit	credit
Aug 2	Land (72000/6)	12000
	Building (72000/6*2)	24000
	Equipment (72000/6*3)	36000
	Notes payable		72000
	(To record lump sum purchase)