= View Policies Current Attempt in Progress Sandhill Company purchased land and a building on April 1, 2019, for $390,000. The company paid $120,000 in cash and signed a 5% note payable for the balance. At that time, it was estimated that the land was worth $155,000 and the building. $235,000. The building was estimated to have a 25-year useful life with a $40,000 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. 31 Recorded annual depreciation. Paid the interest owing on the note payable. 31 17 31 31 Paid $275 to have the furnace cleaned and serviced. Recorded annual depreciation. Paid the interest owing on the note payable. The land and building were tested for impairment. The land had a recoverable amount of $125,000 and the building. $245,00 31 31 Sold the land and building for $330,000 cash: $120,000 for the land and $210,000 for the building Paid the note payable and interest owing. 1 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 outr Peronurnal entries in the order Question 3 of 6 > -/30 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 for the amounts. Record Journal entries in the order presented in the problem. Round answers to decimal places, eg,5,275.) 2019 Date Debit Account Titles and Explanation Land Credit Apr. 1 155,000 Building 235,000 Notes Payable 270,000 120,000 Cash (To record purchase of property) Depreciation Expense Dec 31 Accumulated Depreciation - Building (To record depreciation) Interest Expense Dec 31 Interest Payable (To record interest) 2020 Date Account Titles and Explanation Debit Credit 2020 Date Account Titles and Explanation Debit Credit Feb 17 V Building Cash (To record payment of furnace cleaning) Dec 31 7 Depreciation Expense Accumulated Depreciation - Building (To record depreciation) Interest Expense Dec. 31 Interest Payable To record interest) Dec 31 Impairment Loss Land (To record land impairment) Dec. 31 Building Impairment Loss (To record building impairment) 2021 -/30 Assume instead that the company sold the land and building on October 31, 2021, for $410,000 cash: $165,000 for the land and $245,000 for the building. Prepare the journal entries to record the sale. (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 for the amounts. Round answers to decimal places, eg. 5,275) Date Account Titles and Explanation Debit Credit Oct. 31 (To record depreciation expense.) Oct. 31 (To record disposal.) e Textbook and Media List of Accounts 2021 Date Account Titles and Explanation Debit Credit Depreciation Expense Accumulated Depreciation - Building (To record depreciation) Jan. 31 Cash Accumulated Depreciation - Building Loss on Fair Value Adjustment of Land (To record disposal) Feb. 1 Notes Payable Interest Expense Cash (To record payment of note) e Textbook and Media