Capital Assets

In January 2021, ABC Florida Inc buys a building for $1,250,000 which was all financed by a Mortgage from National Bank except the 20% down payment which the company made it in cash. The company also paid the following fees in cash to get the building ready for its operations: Contractor fees for $32,000 to build new offices and the material costs was for $16,500.

In February 2021, the company also bought an Equipment from Canada to be used in their operation. The cost of the equipment was $45,000 which was entirely financed by the vendor through note payable for the same amount.

However, the company paid in cash some expenses including $6,750 Sales taxes, $1,500 for testing and maintaining unique features, $2,200 installation cost, $1,350 transportation charges and 550$ insurance on the equipment while being in transit between US- Canada borders. The equipment arrived in the company on March 5th, 2021.

The company bought insurance on the equipment with $100 per month fee and it paid in cash $800 for the entire 2021 balance in March 2021. In July 2021, they incurred $600 repair and maintenance expense to fix a bug detected on the machine which also they paid it in cash right away.

All the provided costs are in US Currency. Requirement:

1. What is the company's cost of their purchased building?

2. What is the company's cost of their purchased Equipment?

3. Provide all the required Journal Entries for 2021 Year End