Word Print Immersive Reader Edit Document - Find Q4. (15 marks) During 2018, Paul Sing Inc. paid $200,000 for land and built a restaurant in Surrey, BC. Prior to construction, the City of Surrey charged Paul Sing Inc. $2,250 for a building permit, which Paul Sing Inc. paid. Paul Sing Inc. also paid $20,000 for architect's fees. The construction cost of $700,000 was financed by a long-term note payable issued on January 1, 2018, with interest cost of $29,000 paid at December 31, 2018. The building was completed September 30, 2018. Paul Sing Inc. will depreciate the building by the straight-line method over 25 years, with an estimated residual value of $60,000. 1. Journalize transactions for the following: a) Purchase of the land b) All the costs chargeable to the building, in a single entry C) Depreciation on the building 2. Report this transaction in the Property, Plant, and Equipment on the company's balance sheet 91% Give Feedback TL 110 Page 8 of 14 ch ORI .docx Clos E' Word Immersive Reader Edit Document - Print 2. Report this transaction in the Property, Plant, and Equipment on the company's balance sheet at December 31, 2018 3. What will Paul Sing Inc.'s income statement for the year ended December 31, 2018, report for the building? Answer: 1. Particulars Debit Credit Dec 31", 2018 a) b) Page 8 of 14 91% Give Feedt Te to search O BI a Word Immersive Reader Edit Document - Print Q5. (10 marks) a) Suppose Mike corporation buys $1,000,000 of TD bonds at a price of 101. The TD bonds pay cash interest at the annual rate of 7% and mature at the end of five years.) i. How much did Mike corporation pay to purchase the bond investment? How much will Mike corporation collect when the bond investment matures? ii. How much cash interest will Mike Corporation receive each year from TD? Will Mike Corporation annual interest revenue on the bond investment be more or less than the amount of cash interest received each year? Give your reason. Page 10 of 14 91% Give Feedb search ORI a