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During 2020, Ming Inc. paid $190,000 for land and built a restaurant in Caledon, Ontario. Prior to construction, the city of Caledon charged Ming
During 2020, Ming Inc. paid $190,000 for land and built a restaurant in Caledon, Ontario. Prior to construction, the city of Caledon charged Ming Inc. $1,000 for a building permit, which Ming Inc. paid. Ming also paid $15,000 for architect's fees. The construction cost of $670,000 was financed by a long-term note payable issued on January 1, 2020, with interest cost of $28,020 paid at December 31, 2020. The building was completed September 30, 2020. Ming Inc. will depreciate the building by the straight-line method over 25 years, with an estimated residual value of $35,000. Requirements Requirement 1. Journalize transactions for the following: (Record debits first, then credits. Explanations are not required. Hold all decimals in interim calculations. Round your final answer to the nearest whole dollar.) a. Purchase of the land. Date Accounts b. All the costs chargeable to the building, in a single entry. Date Accounts Debit Credit Debit Credit
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