During 2018, Mings Book Store paid $486,000 for land and built a store in Naperville, Illinois. Prior
Question:
During 2018, Ming’s Book Store paid $486,000 for land and built a store in Naperville, Illinois. Prior to construction, the city of Naperville charged Ming’s $1,000 for a building permit, which Ming’s paid. Ming’s also paid $15,000 for architect’s fees. The construction cost of $670,000 was financed by a long-term note payable, with interest costs of $28,020 paid at the completion of the project. The building was completed June 30, 2018. Ming’s depreciates the building using the straight-line method over 35 years, with estimated residual value of $330,000.
1. Journalize transactions for the following (explanations are not required):
a. Purchase of the land
b. All the costs chargeable to the building in a single entry
c. Depreciation on the building for 2018
2. Report Ming’s plant assets on the company’s balance sheet at December 31, 2018.
3. What will Ming’s income statement for the year ended December 31, 2018, report for this situation?A
Balance SheetBalance 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...
Step by Step Answer:
Financial Accounting
ISBN: 978-0134725987
12th edition
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.