Questions: Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Office Supplies (108); Office Equipment (163); Automobiles (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250); Common Stock (307); Dividends (319); Consulting Revenue (403); Salaries Expense (601); and Utilities Expense (602). The company purchased land valued at 45,000 and a building valued at 160,000. The purchase is paid with 30,000 cash and a note payable for 175,000. Note: Enter debits before credits.

To record the transaction of purchasing land and a building, we need to make the appropriate journal entries. The transaction involves acquiring land and a building, paying part of the purchase with cash, and the remainder with a note payable. Here is how the journal entry would look:

\[ \begin{array}{|c|c|c|c|} \hline \text{Transaction} & \text{Account Title} & \text{Debit} & \text{Credit} \\ \hline \text{Purchase of land and building} & \text{Land (172)} & \$45,000 & \\ & \text{Building (170)} & \$160,000 & \\ & \text{Cash (101)} & & \$30,000 \\ & \text{Notes Payable (250)} & & \$175,000 \\ \hline \end{array} \]

Explanation:

1. Land (172) Debit $45,000: The land is recorded as an asset, so it is debited to increase the asset account.

2. Building (170) Debit $160,000: Similarly, the building is also an asset, so it is debited to increase the asset account.

3. Cash (101) Credit $30,000: Cash is an asset account, and since cash is being paid out, it is credited to decrease the asset account.

4. Notes Payable (250) Credit $175,000: Notes payable is a liability account. Since the company is taking on a liability to pay for part of the purchase, it is credited to increase the liability account.

This journal entry accurately reflects the transaction of purchasing land and a building with a combination of cash and a note payable.