Blossom Tool Supply Company purchased land and a building on April 1, 2022, for $393,600. The company paid $122,400 in cash and signed a 5% note payable for the balance. At that time, it was estimated that the land was worth $157,000 and the building, $236,600. The buliding was estimated to have a 25-year useful life with a $41.000 residual value. The company has a December 31 year end, prepares adjusting entries annually, and uses the straight-line method for bulidings; depreciation is calculated to the nearest month. The following are related transactions and adjustments during the next three years. Feb.17 Paid $285 to have the furnace cleaned and serviced. Dec.31 Recorded annual depreciation. 31 Paid the interest owing on the note payable. 31 The land and building were tested for impairment. The land had a recoverable amount of $126,800 and the building. $24 Question 3 of 6 If. 1 Land 157,000 Building 236,600 Notes Payable Depreciation Expense Accumulated Deprecintion - Building (To record depreciation) lec. 31 V Interest Expense 10,170 Interest Payable (To record interest) Assume instead that the company sold the land and building on October 31.2024, for $414.000 cash: $167,000 for the land and $247,000 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 O for the amounts. List all debit entries before credit entries. Round answers to O decimal places, es. 5,275.) Question 3 of 6 Land 130 Building 236,600 Notes Payable Depreciation Expense Accumulated Depreciation-Building (To record depreciation) Interest Expense Interest Payable 10,170 Ch 9 Homework Assignment Part 2-new Question 3 of 6 Feb. 17 285 Bec. 31 Depreciation Lepense. 7824 Accumutated Depreciation - Land improwements (To record depreciation) Intereit Payatile (Torecord interest) imterest Payable 13,560 Question 3 of 6 130 (To record building impairment) 2024 \begin{tabular}{|l|l|r|} \hline Date Account Titles & Debit \\ \hline Jan.31 & Depreciation Expense \\ \hline Accumulated Depreciation-Land Improvements & 687 \\ \hline \end{tabular} (To record depreciation) Question 3 of 6 Loss on Fair Value Adjustment of Land Loss on Disposal 34,313 Land Building (To record disposal) Interest Payable 1130 Assume instead that the company sold the land and building on October 31, 2024, for $414,000 cash: $167,000 for the land and $247,000 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 O for the amounts. List all debit entries before credit entries. Round answers to O decimal places, es. 5.275.)
