During

2021,

Chin's

Book Store paid

$485,000

for land and built a store in

Georgetown, Washington D.C..

Prior to construction, the city of

Georgetown

charged

Chin's

$1,800

for a building permit, which

Chin's

paid.

Chin's

also paid

$15,800

for architect's fees. The construction cost of

$710,000

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

$30,180

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

2021.

Chin's

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

$341,000.

Read the

requirements

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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

2021.

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

a. Journalize the purchase of the land.

Journal Entry
Date		Accounts	Debit	Credit

Part 2

b. Journalize all the costs chargeable to the building in a single entry.

Journal Entry
Date		Accounts	Debit	Credit

Part 3

c. Journalize depreciation on the building for

2021.

Journal Entry
Date		Accounts	Debit	Credit

Part 4

Requirement 2. Report

Chin's

plant assets on the company's balance sheet at December 31,

2021.

Balance Sheet
Plant assets:
	Less:

Part 5

Requirement 3. What will

Chin's

income statement for the year ended December 31,

2021,

report for these facts?

Income Statement