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Make the journal entry to record the purchase

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A company purchased property that includes land, buildings and equipment for $5.5 million. The company pays $180,000 in legal fees, $220,000 in commissions, and $100,000 in appraisal fees. The land is estimated at 25%, the buildings are at 40%, and the equipment at 35% of the property value.

Question 1: Prepare the journal entry to record the purchase assuming that the company paid 50% of the amounts using cash and signed a note (due in five years) for the remainder.

Reference no: EM132506145

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