During

2018,

Chang's

Book Store paid

$481,000

for land and built a store in

Newark, New Jersey.

Prior to construction, the city of

Newark

charged

Chang's

$1,200

for a building permit, which

Chang's

paid.

Chang's

also paid

$15,200

for architect's fees. The construction cost of

$679,900

was financed by a long-term note payable, with interest costs of

$28,180

paid at the completion of the project. The building was completed June 30,

2018.

Chang's

depreciates the building using the straight-line method over 35 years, with estimated residual value of

$335,000.

Read the requirements

LOADING...

.

Question content area bottom

Part 1

Requirement 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, and c. Depreciation on the building for

2018.

(Record debits first, then credits. Exclude explanations from any journal entries.)

a. Journalize the purchase of the land.

Journal Entry
Date		Accounts	Debit	Credit

Requirements

Dialog content starts

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 Chang's plant assets on the company's balance sheet at December 31, 2018.
3.	What will Chang's income statement for the year ended December 31, 2018, report for these facts?