Watson Company purchased assets of Holmes Ltd. at auction for $1,390,000. An independent appraisal of the fair value of the assets acquired is listed below: Land $ 304,000
Building 380,000
Equipment 608,000
Inventories 228,000
Prepare the journal entry to record the purchase of the assets.

Dr land        $278,000

Dr building  $347,500

Dr equipment $556,000

Dr inventories $208,500

Cr cash                                 $1,390,000

Explanation:

The total amount spent in acquiring the assets is $1,390,000 which needs to be shared between the assets acquired on the basis of individual values of the assets

Total of individual assets' values=$304000+$380000+ $608000+$228000=$ 1,520,000.00  

Cost attributable to land:$304000/$1520000*$1,390,000=$ 278,000.00  

Cost attributable to Building:$380000/$1520000*$1390000=$ 347,500.00  

cost attributable to equipment=$608000/$1520000*$1390000=$556,000.00

cost attributable to inventories=$228000/$1520000*$1390000 =$208,500.00  

answer; /// the above statement is (true);

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