I need Help with this problem any one?
On July 2 Mr. X Buys a Water park total price of $407,000. The assets include pool furniture,$2,000; the pool/slide facility (includes filter system, pools, pump, and slids), $90,000; building, 75,000; and land, 240,000. Mr. X paid $120,00 down and signed a mortgage note for the remainder. ( Debit the assets, and credit Cash and Mortgage Payable.)
I need to enter this in to General Journal, and this is how I think it should be.
DATE DESCRIPTION POST. REF. DEBIT CREDIT
July 2 Mortgage Payable 222 407,000
Cash 111 120,000
Pool Furniture 126 2,000
Pool/Slide Facility 124 90,000
Building 122 75,000
Land 121 240,000
Bought Water park in its entirety.
So I am confused now because in the end it wont balance out. Any suggestions? :confused:
