On January 1,2018,Ventura Co.bought a parcel of land for use in its operations by paying the seller $320,000 in cash and signing a five year,12% note payable in the amount of $80,000.In connection with the purchase of the land,Coopers incurred legal fees of $15,200,a real estate agent sales commission of $20,000,surveying fees of $800,and an appraisal fee of $4,000.
Required:
Part a.Compute the total acquisition cost of the parcel of land.
Part b.Prepare the journal entry to record the purchase of the parcel of the land.

Question

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The Answer of On January 1,2018,Ventura Co.bought a parcel of land for use in its operations by paying the seller $320,000 in cash and signing a five year,12% note payable in the amount of $80,000.In connection with the purchase of the land,Coopers incurred legal fees of $15,200,a real estate agent sales commission of $20,000,surveying fees of $800,and an appraisal fee of $4,000.
Required:
Part a.Compute the total acquisition cost of the parcel of land.
Part b.Prepare the journal entry to record the purchase of the parcel of the land.