Pharoah Company purchased land and a building on April 1, 2019, for $360,000 The company paid $105,600 in cash and signed a 5 note payable for the balance At that time, it was estimated that the land was worth $140,000 and the building, $220,000 The building was estimated to have a 25 year useful life with a $32,500 residual value The company has a December 31 year end, prepares adjusting entries annually, and uses the straight line method for buildings depreciation is calculated to the nearest month The following are related transactions and adjustments during the next three years 2019 Dec 31 Recorded annual depreciation 31 Paid the interest owing on the note payable 2020 Feb 17 Paid $200 to have the furnace cleaned and serviced Dec 31 Recorded annual depreciation 31 Paid the interest owing on the note payable 31 The land and building were tested for impairment The land had a recoverable amount of $111,500 and the building, $230,000 2021 Jan 31 Sold the land and building for $300,000 cash $105,000 for the land and $195,000 for the building Feb 1 Paid the note payable and interest owing Record the above transactions and adjustments, including the acquisition on April 1, 2019 (Hint Any impairment loss for land is credited directly to the Land account ) (Credit account titles are automatically indented when the amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts Record journal entries in the order presented in the problem Round answers to 0 decimal places, e g 5,275 ) Record the above transactions and adjustments, including the acquisition on April 1, 2019 (Hint Any impairment loss for land is credited directly to the Land account ) (Credit account titles are automatically indented when the amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts Record journal entries in the order presented in the problem Round answers to 0 decimal places, e g 5,275 ) Record the above transactions and adjustments, including the acquisition on April 1, 2019

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Pharoah Company purchased land and a building on April 1, 2019, for $360,000. The company paid $105,600 in cash and signed a 5% note payable

Pharoah Company purchased land and a building on April 1, 2019, for $360,000. The company paid $105,600 in cash and signed a 5% note payable for the balance. At that time, it was estimated that the land was worth $140,000 and the building, $220,000. The building was estimated to have a 25-year useful life with a $32,500 residual value. The company has a December 31 year end, prepares adjusting entries annually, and uses the straight-line method for buildings; depreciation is calculated to the nearest month. The following are related transactions and adjustments during the next three years.

2019
Dec. 31		Recorded annual depreciation.
31		Paid the interest owing on the note payable.

2020
Feb. 17		Paid $200 to have the furnace cleaned and serviced.
Dec. 31		Recorded annual depreciation.
31		Paid the interest owing on the note payable.
31		The land and building were tested for impairment. The land had a recoverable amount of $111,500 and the building, $230,000.

2021
Jan. 31		Sold the land and building for $300,000 cash: $105,000 for the land and $195,000 for the building.
Feb. 1		Paid the note payable and interest owing. Record the above transactions and adjustments, including the acquisition on April 1, 2019. (Hint: Any impairment loss for land is credited directly to the Land account.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. Round answers to 0 decimal places, e.g. 5,275.)Record the above transactions and adjustments, including the acquisition on April 1, 2019. (Hint: Any impairment loss for land is credited directly to the Land account.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. Round answers to 0 decimal places, e.g. 5,275.)Record the above transactions and adjustments, including the acquisition on April 1, 2019.