Answer:
Dr Office building $250,000
Cr Cash $50,000
Cr Mortgage payable $200,000
Explanation:
The purchase of the building on January 1 2021 implies that the Gundy Enterprises now has an office building in its books of account which is worth $250,000,as a result office building account would be debited with $250,000.
However,cash account would be credited with $50,000 since the business parted with cash of $50,000 while the remaining $200,000 would be credited to mortgage payable account in order to reflect the 10 year obligation in the books of accounts
