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ased land and a building on April 1, 2019. for $398400. The company paid $123.600 in cash and oneda 5% note payable for the balance.
ased land and a building on April 1, 2019. for $398400. The company paid $123.600 in cash and oneda 5% note payable for the balance. At that time, it was estimated that the land was worth $159.000 and the building 5239.00. The building was estimated to have a 25-year useful life with a $42.000 residual value. The company has a December 31 year end, prepares adjusting entries annually and uses the straight line method for buildingsdepreciation is calculated to the nearest month. The following are related transactions and adjustments during the next three years. Recorded annual depreciation Paid the interest owing on the note payable Paid $295 to have the furnace cleaned and serviced. Recorded annual depreciation Paid the interest owing on the note payable. The land and building were tested for impairment. The land had a recoverable amount of $128.600 and the building $249.000 Sold the land and building for $338.000 cash:5124,000 for the land and $214,000 for the building Paid the note payable and interest owing Assume instead that the company sold the land and building on October 31, 2021, for $418,000 cash: $169,000 for the land and $249,000 for the building Prepare the journal entries to record the sale. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts. Round answers to decimal places, eg: 5.275) Date Account Titles and Explanation Debit Credit Oct. 31 To record depreciation expense.) Oct. 31
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