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neednhelp on how to get these answers On January 1, Mitzu Company pays a lump-sum amount of $2,800,000 for land, Building 1, Building 2 and
neednhelp on how to get these answers
On January 1, Mitzu Company pays a lump-sum amount of $2,800,000 for land, Building 1, Building 2 and Land Improvements 1 Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $671,000, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $518,500 and is expected to last another 17 years with no salvage value. The land is valued at $1,860,500 The company also incurs the following additional costs. Cost to demolish Building 1 $ 341,400 Cost of additional land grading 191,400 Cost to construct Building 3, having a useful life of 25 years and a $400,000 salvage value 2,302,000 Cost of new Land Taprovements 2, having a 20-year useful life and no salvage value 173,000 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1 View transaction list Journal entry worksheet Record the cost of the plant assets, paid in cash, On January 1, Mitzu Company pays a lump-sum amount of $2,800,000 for land, Building 1. Building 2, and Land Improvements 1 Building 1 has no value and will be demolished Building 2 will be an office and is appraised at $671,000, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $518,500 and is expected to last another 17 years with no salvage value. The land is valued at $1,860,500. The company also incurs the following additional costs Cost to demolish Building 1 $ 341,400 Cost of additional land grading 191,400 Cost to construct Building 3, having a useful life of 25 years and a $400,000 salvage value 2,302,000 Cost of new Land improvements 2, having a 20-year useful life and no salvage value 173,000 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets we in use. View transaction list Journal entry worksheet 1 2 3 Record the year-end adjusting entry for the depreciation expense of Building 2. Journal entry worksheet Record the year-end adjusting entry for the depreciation expense of Land Improvements 1 Note: Enter debits before credits General Journal Date December 31 Debit Credit Record entry CA N 3 > Record the year-end adjusting entry for the depreciation expense of Land Improvements 2 Note: Enter debits before credits. Date December 31 General Journal Debit Credit Recordant
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