Highland clothing purchased land, paying $ 92 comma 000 cash and signing a $ 300 comma 000 note payable. in addition, highland paid delinquent property tax of $ 2 comma 100, title insurance costing $ 950, and $ 5 comma 800 to level the land and remove an unwanted building. record the journal entry for purchase of the land

The Journal entry is as follows:

Land A/c         Dr. $400,850

   To Cash A/c                               $100,850

   To Notes payable                      $300,000

(To record purchase of land with cash and notes payable)

Workings:

Purchase price of land = $392,000

Total cost of land:

= Purchase price of land + Property taxes + Title insurance + Removal of building

= $392,000 + $2,100 + $950 + $5,800

= $400,850

options ?

explanation: