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    Homework 10

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    racheli7252

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Homework 10

    Uploaded by

    racheli7252
    2 views3 pages

    Copyright

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    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    2 views3 pages

    Homework 10

    Uploaded by

    racheli7252

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
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    Homework 10

    Purchase Price of Building $1,200,000.00


    Real Estate Commissions $25,000.00
    Legal Fees $40,000.00
    Tax Lien Owed by Prior Owne $15,000.00 (Must be paid or satisfied by buyer)
    Paid Landscaper for clean-up $5,000.00

    a. Total Cost of Building $1,285,000.00


    b.
    JOURNAL
    Account Name Debit Credit
    Building $ 1,200,000.00
    Cash $ 1,200,000.00
    Real Estate Commission $ 25,000.00
    Cash $ 25,000.00
    Closing Cost $ 40,000.00
    Cash $ 40,000.00
    Prior Owner Tax $ 15,000.00
    Cash $ 15,000.00
    Landscaping $ 5,000.00
    Cash $ 5,000.00

    c. Annual Depreciation
    Purchase price-salvage divided by years
    $1,100,000.00 $ 55,000.00

    d.
    JOURNAL
    Account Name Debit Credit
    Depreciation Expense $ 55,000.00
    Accumulated Depreciation-Building $ 55,000.00

    e.
    Cost of Building $1,200,000.00
    Less: Accumulated Depreciation $ 660,000.00
    Book Value $540,000.00
    Proceeds from Sale $ 600,000.00
    Gain on Disposal of Plant As $ 60,000.00

    f.
    JOURNAL
    Account Name Debit Credit
    Cash $ 600,000.00
    Accumulated Depreciation $ 660,000.00
    Building $ 1,200,000.00
    Gain on Dispoasl of Plant Asset $ 60,000.00
    Totals ### ###
    isfied by buyer)

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