Answer:
Explanation:
The journal entries are shown below:
Inventory A/c Dr $600,000
Land A/c Dr $990,000
Building A/c Dr $2,000,000
Customer relationship A/c Dr $800,000
To Account payable A/c $80,000
To Cash A/c $4,200,000
To Gain on purchase A/c $110,000
(Being the acquisition is recorded)
Legal fees expense A/c or Professional service expense A/c Dr $42,000
To Cash A/c $42,000
(Being the cash is paid)
