Riverwood properties bought three lots in a subdivision for a? lump-sum price. an independent appraiser valued the lots as?

lot appraised value

lot ,500
lot ,500
lot ,000

riverwood paid $ 355,000 in cash. record the purchase in the journal, identifying each lot's cost in a separate land account. round decimals to two places, and use the computed percentages throughout?

Explanation:

The cost allocation of each lot is presented below:

                                          (A)                      (B)                            (A × B)

Lot       Appraised Value  Percentage  Purchase value          Allocated cost      

Lot 1        $76,500               15%               $355,000                 $53,250

Lot 2       $229,500             45%             $355,000                  $159,750

Lot 3      $204,000             40%            $355,000                   $142,000

Total      $510,000              100%                                              $355,000

Now the journal entry would be

Land - Lot 1 $53,250

Land - Lot 2  $159,750

Land - Lot 3   $142,000

     To Cash A/c $355,000

(Being the lots are purchased for cash)

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23