On January 1, 2013, LR purchased a 1,000 acre ranch. The asking price was $1,300,000. Approximately 10 percent of the total value of the ranch was allocable to ranch improvements. Payment in full was made as follows: Cash, $371,930, 10,000 shares LR common shares (market $25 per share based on several recent large market exchanges) and a $500,000 non-interest-bearing note payable in full on December 31, 2014 (going interest rate, 15 percent). Give the journal entry for LR to record this purchase (rounded).

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The Answer of On January 1, 2013, LR purchased a 1,000 acre ranch. The asking price was $1,300,000. Approximately 10 percent of the total value of the ranch was allocable to ranch improvements. Payment in full was made as follows: Cash, $371,930, 10,000 shares LR common shares (market $25 per share based on several recent large market exchanges) and a $500,000 non-interest-bearing note payable in full on December 31, 2014 (going interest rate, 15 percent). Give the journal entry for LR to record this purchase (rounded).

On January 1, 2013, LR Purchased a 1,000 Acre Ranch