RenFair Clothing purchased land, paying $80,000 cash and signing a $220,000 note payable. In addition, RenFair
Clothing paid delinquent property tax of $1,500, title insurance costing $800, and $4,000 to level the land and remove
an unwanted building. Record the journal entry for purchase of the land.
Begin by determining the cost of the land.
Purchase price of land
Add related costs:
Total cost of land