please explain it according to ASC(accounting standard codification) Frank Servi

Question

please explain it according to ASC(accounting standard codification) Frank Services is selling a parcel of land to Estelle Products for use as a potential building site. The sales agreement, signed on June 1, required Estelle Products to provide a deposit of S5,000 with a balance of $95,000 due within one year. Estelle Products paid the S5,000 deposit on June 1. Estelle Products is depending on a good year to provide the cash needed to consummate the purchase. If Estelle fails to complete the purchase within the specified one-year period, the deposit is not refundable and Frank can proceed to market the parcel to other interested parties. What journal entry or entries should Frank make to record this transaction? essay question

Explanation / Answer

Narration : Being Land and Building sold to Estelle on deposit of $5000

ASC (Accounting Standard Codification) 360-20

Particulars Debit Credit Cash 5000 Asset held for sale 95000 Land & Building 100000

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