On January 1,2016,Coopers Industries Bought a Parcel of Land for Use

Essay

On January 1,2016,Coopers Industries bought a parcel of land for use in its operations by paying the seller $400,000 in cash and signing a five year,12% note payable in the amount of $100,000.In connection with the purchase of the land,Coopers incurred legal fees of $19,000,a real estate agent sales commission of $25,000,surveying fees of $1,000,and an appraisal fee of $5,000.
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.