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I am stuck on this problem any help would be much appreciated! P9-32A (book/static) Question Help Ellie Johnson Associates surveys American eating habits. The company's
I am stuck on this problem any help would be much appreciated!
P9-32A (book/static) Question Help Ellie Johnson Associates surveys American eating habits. The company's accounts include Land, Buildings, Office Equipment, and Communication Equipment, with a separate Accumulated Depreciation account for each depreciable asset. During 2018, Ellie Johnson Associates completed the following transactions: (Click the icon to view the transactions.) Record the transactions in the journal of Ellie Johnson Associates. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Jan. 1: Purchased office equipment, $113,000. Paid $80,000 cash and financed the remainder with a note payable. (Record a single compound journal entry.) Date Accounts and Explanation Debit Credit Jan. 1 Office Equipment 113,000 Cash 80,000 Notes Payable 33,000 To record purchase of office equipment with cash and note payable. Apr. 1: Acquired land and communication equipment in a lump-sum purchase. Total cost was $310,000 paid in cash. An independent appraisal valued the land at $244,125 and the communication equipment at $81,375. (Record a single compound journal entry.) Date Accounts and Explanation Debit Credit Apr. 1 Land 232,500 Communication Equipment 77,500 Cash 310,000 To record purchase of land and communication equipment with cash. Sep. 1: Sold a building that cost $520,000 (accumulated depreciation of $285,000 through December 31 of the preceding year). Ellie Johnson Associates received $420,000 cash from the sale of the building. Depreciation is computed on a straight-line basis. The building has a 40-year useful life and a residual value of $25,000. Before we record the sale of the building, we must record depreciation on the building through September 1, 2018. Date Debit Credit Sep. 1 Accounts and Explanation Depreciation Expense Building Accumulated DepreciationBuilding 8,250 8,250 To record depreciation on building. Now record the sale of the building on September 1. Date Accounts and Explanation Debit Credit Sep. 1 Choose from any list or enter any number in the input fields and then click CheckStep by Step Solution
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