Soved The following information applies to the questions displayed below.) On January 1, Mitzu Company pays a lump-sum amount of $2,600,000 for land, Building 1, 8uilding 2, and Land Improvements 1. Bullding 1 has no value and will be demolished, Bullding 2 will be an office and is appraised at $796,500, with a useful life of 20 years and a $80,000 salvage value. Land Improvements 1 is valued at $295,000 and is expected to last another 10 years with no salvagge value. The land is valued at $1,858,500. The company also incurs the following additional costs. Cost to denolish Building 1 Cost of additionat land grading cost to construct Building 3, having a useful tife of 25 years and a s 2.202,000 173, eep 3. Using the straight-line method, prepare the December 3 adjusting entries to record depreciation for the first year these assets were. in use. Journal entry worksheet 34 2. Note: Enter debits before credits. Sunt [The following information applies to the questions disployed below] On January 1, Mitzu Company pays a lump-sum amount of $2,600,000 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 $796,500, with a usefut tife of 20 years and a $80,000 salvage value. Land improvements 1 is valued at $295,000 and is expected to last another 10 years with no salvage value. The land is valued at $1,858,500. The company also incurs the following additional costs, Cost to demolish Burlding 1 Cost of additional land grading Cost of new Land Improvements 2, having a 20-year useful years and a $398,000 satvage value 193,400 2, 202, eee 173 , 000 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were nuse. Journal entry worksheet 1 3 4 Record the year-end adjusting entry for the depreciation expense of Bullding 3. Enter debits before credits. Wes to the questions displayed below) improvements 1. Building 1 hy pays a lump-sum amount of $2,600,000 for land, Bullding 4 , Building 2, and Land with a usefut life of 20 years and no volue and will be demolished. Bullding 2 will be an office and is appraised at $796,500 Last another to years with no salva $80,000 salvage value. Land improvements 1 is valued at $295,000 and is expectied to acditional costs. Cost to desoltsh Butding 1 cost of additionel tand grading Cost of new Land Inprovengents 3 , having a usefut tife of 25 years arid a 3390,000 satvage vatue $340,460 193, 400 2,202, ede 173,000 3. Using the straight-line method, prepare the December 31 indiusting entries to record dopreciation for the first year these assets were in use. Journal entry worksheet \begin{tabular}{ll} 1 & 2 \\ 4 \end{tabular} Recard the year-end adjusting entry for the depreciation expense of Land tmprovements 1 . Wete: Enter debilu before creatu. acdibonal costs. Cost of additionst tand oriveting in wse. Journal entry worksheet 123 Record the rear-end odjusting entry for the depreciation expense of land Improverments 2
