Pass The General Journal Entries.

1. On January 1, 2021, Ryman purchased land at a price of $180,000. The closing costs were $5,000. An old building was removed from the land at a cost of $10,000. The removal of the building was necessary to get the land ready for its intended use. A permanent retention pond was installed for $10,000. All amounts were paid with cash. Record the purchase of the land.

2. On January 1, 2021, Ryman began construction on a building on the purchased land. The construction was completed on December 31, 2021. Expenditures for construction were: $2,000,000 on January 1, $750,000 on May 1, $600,000 on June 1, $750,000 on September 1 and $600,000 on December 31. To pay for the construction, Ryman borrowed $3,000,000 from a local bank on January 1. The $3,000,000 note represents a 10-year loan agreement with an annual interest rate of 7%. The only other loans that Ryman has outstanding are the Note Payable and Bond Payable recorded on the trial balance (above). Record journal entries for the January, April, June, September, and December construction expenditures separately. In a separate journal entry, record the new construction notes payable initiated on January 1. In addition, calculate the weighted average expenditures, avoidable interest and actual interest to determine the amount of interest that must be capitalized for the year. Assume that Rymans actual interest was paid on December 31, and make the journal entry to record the interest on that date.

3. For the building that began construction on January 1, 2021, the building will need to be decommissioned on January 1, 2041 for an expected cost of $500,000. Rymans annual borrowing costs are 5% and the present value of $1 in 20 years is $0.3769. Record the entry related to the asset retirement obligation entries for both January 1 and December 31. (Note: we will handle any depreciation journal entries related to the ARO as part of Transaction L, so dont do it here.)

4. On January 2, 2021, Ryman sold inventory for $1,000,000 on credit with terms of 2/10, n/30. The cost of the inventory sold was $600,000. Ryman uses the gross method to account for sales discounts.

5. On January 8, 2021, Ryman received a payment from the customer that fully satisfied the sales agreement from January 2.

6. On January 9, 2021, Ryman exchange equipment with Tootsies, Inc., receiving $15,000 cash and another piece of equipment with a fair market value of $85,000. The equipment Ryman gave up had an original cost of $130,000 and accumulated depreciation of $70,000. The exchange lacked commercial substance. Record the exchange.

7. On April 1, 2021 Ryman purchased land and a building for $800,000 (cash). The following data were collected concerning the property. Record the purchase of the land and building.

	Current Appraised Value	Sellers Book Values
Land	$400,000	$50,000
Building	$600,000	$350,000

8. On May 1, 2021 Ryman acquired 100% Orchid Lounge Industries for $400,000 cash. The following represents Lamar Industries book values and fair values at the time of the acquistion.

	Fair Value	Orchids Book Value
Cash	$10,000	$10,000
Accounts Receivables	15,000	15,000
Inventory	30,000	20,000
Land	100,000	20,000
Building	150,000	80,000
Patent	45,000	0
Accounts Payable	(20,000)	(20,000)
Notes Payable	(100,000)	(100,000)

1. On July 1, 2021, Ryman acquired land by issuing 10,000 shares of $1 par value common stock. The appraised value of the land on the acquisition date was $125,000. The common stock is actively traded and had a market price of $10.00 per share on the acquisition date. Record the acquisition of the land.

10. On December 7, 2021, Ryman factored $400,000 of accounts receivables to Honky Tonk Finance Corporation with recourse. Honky Tonk assessed a finance charge of 1% of the factored receivables and retained 3% of the receivables to cover sales returns and allowances. The recourse liability was estimated at 2% of the gross accounts receivable. Record the factoring of the receivables.

11. On December 31, 2021, Ryman assigned $120,000 of its accounts receivables to Layla Bank as collateral for a $100,000 loan. The assignment agreement calls for Ryman to continue to collect the receivables. Regions assessed a finance charge of 1.5% of the receivables to initiate the loan agreement. The maturity date of the loan is June 30, 2021. Make the journal entry for this assignment of receivables.

l. Calculate the balance in the property, plant and equipment (PPE) account after recording transactions a)-j). Be sure to include the beginning balance from the trial balance above in your calculation. Ryman uses the straight-line depreciation method to calculate depreciation. The useful life of Rymans PPE is 12 years and there is no salvage value for any of the PPE assets. Record depreciation expense for 2021. For this transaction, you may ignore the effects of partial year depreciation and simply use the ending balance in PPE as the depreciable base.

m. Ryman management needs to accrue bad debt expense on its remaining accounts receivable not previously discussed. Management uses the Aging method to accrue bad debt expense, and uses the following information to record the journal entry for the accrual:

Age of Receivable	Accounts Receivable Balance	Estimated Uncollectible Percentage
<30 Days	2,000,000	1%
31-60 Days	400,000	3%
61-90 Days	250,000	5%
91 to 180 Days	60,000	10%
181 Days +	25,000	30%

Make the required journal entry to record the bad debt expense.

14. On December 31, 2021, Rymans credit manager receives a letter from a customer, Stapleton, Inc., indicating that they are filing for bankruptcy and Ryman will be unlikely to receive their $2,000 receivable balance. Make the journal entry to write off this customer account.

o. Rymans copyright had a carrying value of $300,000 at 12/31/2021. At that date, the undiscounted cash flows and fair value for that studio were $280,000 and $240,000, respectively. If necessary, record any impairment to the studio.

16. The ending inventory balance and COGS balances on the trial balance are valued at FIFO, but Rymans policy is to report inventory under dollar-value LIFO. The table below details the FIFO ending inventory balances for 2015 through 2021:

Year	Ending Balance under FIFO	Price Index
2015	1,400,000	100
2016	1,458,600	102
2017	1,522,500	105
2018	1,700,400	109
2019	1,864,800	111
2020	1,828,500	115
2021	1,920,000	120

Make the journal entry to adjust the inventory balance to LIFO. (Note: you will need to do this adjustment for the entire amount since LIFO was adopted in 2015, not just for the 2021 adjustment.)

17. At year-end, Ryman considered whether product XYZ needed a writedown. The product was original bought for $8,000. The product could be replaced for $7,500 and will likely sell for $10,000. The company typically pays a 10% commission on the sale of the product and plays $200 to deliver it. The normal profit margin for the product is 30% of the selling price. Make the journal entry, if necessary, to writedown the inventory.