During 2012, Ming Book Store paid $485,000 for land and built a store in Baltimore. Prior to

Question:

During 2012, Ming Book Store paid $485,000 for land and built a store in Baltimore. Prior to construction, the city of Baltimore charged Ming $1,700 for a building permit, which Ming paid. Ming also paid $15,700 for architect’s fees. The construction cost of $705,000 was financed by a long-term note payable, with interest cost of $30,040 paid at completion of the project. The building was completed August 31, 2012. Ming depreciates the building by the straight-line method over 35 years, with estimated residual value of $340,000.
1. Journalize transactions for the following:
a. Purchase of the land
b. All the costs chargeable to the building in a single entry
c. Depreciation on the building
Explanations are not required.
2. Report Ming Book Store’s plant assets on the company’s at December 31, 2012.
3. What will Ming’s income statement for the year ended December 31, 2012, report for this situation?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...