The following account balances were included in Bromley Companys balance sheet on December 31, 2015 Land $100,000 Land improvements 20,000 Buildings 300,000 Machinery and Equipment 500,000 During 2016, the following transactions occurred Jan 1 Land was acquired for $70,000 for a future building site Commissions of $4,000 were paid to a real estate agent Feb 1 A factory and land were acquired from Kent Development Company by issuing 20,000 shares of $3 par common stock At that time, the stock was selling for $10 per share on the New York Stock Exchange The independently appraised values of the land and the factory were $60,000 and $180,000, respectively Mar 1 Equipment was acquired at a cost of $120,000 In addition, sales tax, freight costs, and installation costs were $7,000, $10,000, and $16,000, respectively During installation, the equipment was damaged, and $2,000 was spent for repairs Apr 1 A new parking lot was installed at a cost of $30,000 Aug 1 Half the land purchased in Item 1 was prepared as a building site Costs of $26,000 were incurred to clear the land, and the timber recovered was sold for $3,000 A new building was built for $60,000 Architects fees relating to construction were $18,000, and imputed interest on equity funds used during construction was $15,000 No debt is outstanding Sept 1 Costs of $20,000 were incurred to improve some leased office space The lease will terminate in 2018 and is not expected to be renewed Oct 1 A group of new machines was purchased under a royalty agreement that provides for payment of annual royalties based on units produced The invoice price of the machines was $30,000 and freight costs were $2,000 Dec 31 Royalty payments on the new machines for 2016 totalled $12,000 Required Prepare journal entries to record all the preceding events Unless otherwise indicated, assume the company makes all payments in cash Chart of Accounts CHART OF ACCOUNTS Bromley Company General Ledger ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 160 Investment in Land 171 Land 172 Land Improvements 181 Building 182 Leasehold Improvements 185 Equipment 198 Accumulated Depreciation LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable EQUITY 311 Common Stock 313 Additional Paid In Capital on Common Stock 331 Retained Earnings REVENUE 411 Sales Revenue EXPENSES 500 Cost of Goods Sold 510 Lease Expense 511 Insurance Expense 512 Utilities Expense 514 Repair and Maintenance Expense 521 Salaries Expense 532 Bad Debt Expense 534 Royalty Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense

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The following account balances were included in Bromley Companys balance sheet on December 31, 2015: Land $100,000 Land improvements 20,000 Buildings 300,000 Machinery and Equipment

The following account balances were included in Bromley Companys balance sheet on December 31, 2015:

Land	$100,000
Land improvements	20,000
Buildings	300,000
Machinery and Equipment	500,000

During 2016, the following transactions occurred:

Jan. 1	Land was acquired for $70,000 for a future building site. Commissions of $4,000 were paid to a real estate agent.
Feb. 1	A factory and land were acquired from Kent Development Company by issuing 20,000 shares of $3 par common stock. At that time, the stock was selling for $10 per share on the New York Stock Exchange. The independently appraised values of the land and the factory were $60,000 and $180,000, respectively.
Mar. 1	Equipment was acquired at a cost of $120,000. In addition, sales tax, freight costs, and installation costs were $7,000, $10,000, and $16,000, respectively. During installation, the equipment was damaged, and $2,000 was spent for repairs.
Apr. 1	A new parking lot was installed at a cost of $30,000.
Aug. 1	Half the land purchased in Item 1 was prepared as a building site. Costs of $26,000 were incurred to clear the land, and the timber recovered was sold for $3,000. A new building was built for $60,000. Architects fees relating to construction were $18,000, and imputed interest on equity funds used during construction was $15,000. No debt is outstanding.
Sept. 1	Costs of $20,000 were incurred to improve some leased office space. The lease will terminate in 2018 and is not expected to be renewed.
Oct. 1	A group of new machines was purchased under a royalty agreement that provides for payment of annual royalties based on units produced. The invoice price of the machines was $30,000 and freight costs were $2,000.
Dec. 31	Royalty payments on the new machines for 2016 totalled $12,000.

	Required:
	Prepare journal entries to record all the preceding events. Unless otherwise indicated, assume the company makes all payments in cash.

Chart of Accounts

CHART OF ACCOUNTS

Bromley Company

General Ledger

	ASSETS
111	Cash
121	Accounts Receivable
141	Inventory
152	Prepaid Insurance
160	Investment in Land
171	Land
172	Land Improvements
181	Building
182	Leasehold Improvements
185	Equipment
198	Accumulated Depreciation

	LIABILITIES
211	Accounts Payable
231	Salaries Payable
250	Unearned Revenue
261	Income Taxes Payable

	EQUITY
311	Common Stock
313	Additional Paid-In Capital on Common Stock
331	Retained Earnings

	REVENUE
411	Sales Revenue

	EXPENSES
500	Cost of Goods Sold
510	Lease Expense
511	Insurance Expense
512	Utilities Expense
514	Repair and Maintenance Expense
521	Salaries Expense
532	Bad Debt Expense
534	Royalty Expense
540	Interest Expense
541	Depreciation Expense
559	Miscellaneous Expenses
910	Income Tax Expense