Essay
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).
Correct Answer:
Verified
Correct Answer:
Verified
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