The foWowing information applies to the questions displayed below Cay Consulting
ID: 2559007 • Letter: T
Question
The foWowing information applies to the questions displayed below Cay Consulting bought a buildng was ready or and the land on which s loceted for $205.000ces The land company paud 10000 Bridge C Required 2 Prepare the journal entry to record all expenditures. Assume that al transactions were for cash and they occurred at the start of the year. (lf no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Record all expenditures for ehe land and buildings assuming all transactions were paid for with cash and eceurred at the start of the year. Hints ReferencsBook & Resources Compute straight-line depreciation on the building at the end of one year, assuming an estimated 10-year useful life and a $21,500 estimated residual value. (Do not round intermediate calculations.)Explanation / Answer
2) Journal entry :
3) Depreciation expense = (112500-21500/10) = 9100 per year
4) Book value at the end year 2
Date accounts & explanation debit credit Land (205000*50%) 102500 Building (205000*50%+10000) 112500 Cash 215000 (To record Purchase of land and building)