Sneathen Company purchased a restaurant building, land, and equipment for $600,000 cash. The appraised value of the assets was as follows:
Land ........... $200,000
Building ........... 480,000
Equipment ......... 120,000
Total ............ $800,000
Required:
a. Compute the amount to be recorded on the books for each of the assets.
b. Record the purchase in a horizontal statements model like the following one.