Current Attempt in Progress Sheridan Company purchased land and a building on April 1, 2019, for $362,400. The company paid $105,600 in cash and signed a 5% note payable for the balance. At that time, it was estimated that the land was worth $141,000 and the building $221.400. The building was estimated to have a 25-year useful life with a $33,000 residual value. The company has a December 31 year end, prepares adjusting entries annually, and uses the straight-line method for buildings; depreciation is calculated to the nearest month The following are related transactions and adjustments during the next three years 2019 Dec. 31 31 Recorded annual depreciation Paid the interest owing on the note payable. 2020 Feb. 17 Dec 31 31 31 Paid $205 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 $112,400 and the building. $. 2021 Jan. 31 Feb. 1 Sold the land and building for $302,000 cash: $105,000 for the land and $196,000 for the building Paid the note payable and interest owing Sheridan Company purchased land and a building on April 1. 2019. for $362,400. The company paid $105.600 in cash and signed a 5% note payable for the balance. At that time, it was estimated that the land was worth $141,000 and the building. $221,400. The building was estimated to have a 25-year useful life with a $33,000 residual value. The company has a December 31 year end, prepares adjusting entries animally, and uses the straight line method for buildings depreciation 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 S205 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 $112,400 and the building, $251.000 Sold the land and building for $302,000 cash $106,000 for the land and 5196.000 for the building, Paid the not payable and interest owing Record the above transactions and adjustments including the acquisition on April 1, 2019. (Hint: Any impairment loss for land is credited directly to the Land account. (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. Record journal entries in the order presented in the problem. Round answers to decimal places eg. 5,275.) 2019 Date Account Titles and Explanation Debit Credit Apr. 1 Land 141,000 Building 221,400 Cash 105,600 Notes Payable 256.800 To record purchase of property) Dec 31 Depreciation Expense 5.652 5,652 Accumulated Depreciation-Building To record depreciation) Dec 31 Interest Expense 9.630 Cash 9.430 2020 Date Account Titles and Explanation Debit Credit Feb. 17 Repairs Expense 205 Cash 205 To record payment of furnace cleaning) Dec 31 Depreciation Expense 7.536 Accumulated Depreciation Building 7.536 (To record depreciation) Dec 31 Interest Expense 12.840 Cash 12,840 (To record interest) Impairment loss Dec 31 28.800 Land 28.600 (To record land impairmentl 31 No Entry 0 0 No Entry (To record building impairment) 2021 Date Debit Credit Account Titles and Explanation Depreciation Expense Jan 31 628 62 Accumulated Depreciation - Building (To record depreciation) Jan 31 Cash 302.000 Accumulated Depreciation Building 13,816 Loss on Disposal 17.984 Land 112,40 Building 221.40 To record disposal 1,070 Feb. 1 Interest Expense Notes Payable 256,800 257,87 Cash (To record payment of note) c) C) Assume instead that the company sold the land and building on October 31, 2021. for $382.000 cash: $151.000 for the land and $231,000 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 Credit Debit Oct. 31 (To record depreciation expense.) Oct. 31 (To record disposal.)