Listed below are nine fixed-asset transactions. Record the journal entries. Date
ID: 2421983 • Letter: L
Question
Listed below are nine fixed-asset transactions. Record the journal entries. Dates and descriptions are not required. The only account titles you will need are listed:
Account titles:
Cash
Land
Land Improvements
Building
Equipment
Expense (Determine what expense account titles.)
Item 1
Paid $2,500 for insurance coverage on equipment.
Item 2
Paid $7,500 for trees and shrubs.
Item 3
Paid $500 attorney's fees for document preparation related to land purchase.
Item 4
Paid $150,000 for land and building. The land was separately valued at $40,000, and the building at $120,000. Hint: The cash is only $150,000, and the entry must balance.
Item 5
Paid $1,000 freight costs on purchase of new furniture.
Item 6
Paid $300 for staplers, trash cans, and desktop mats.
Item 7
Ordered new $50,000 truck, to be delivered and paid for in the future.
Item 8
Paid $10,000 of interest costs on loan on active building construction project.
Item 9
Paid $25,000 to expand parking lot paving.
Listed below are nine fixed-asset transactions. Record the journal entries. Dates and descriptions are not required. The only account titles you will need are listed:
Account titles:
Cash
Land
Land Improvements
Building
Equipment
Expense (Determine what expense account titles.)
Item 1
Paid $2,500 for insurance coverage on equipment.
Item 2
Paid $7,500 for trees and shrubs.
Item 3
Paid $500 attorney's fees for document preparation related to land purchase.
Item 4
Paid $150,000 for land and building. The land was separately valued at $40,000, and the building at $120,000. Hint: The cash is only $150,000, and the entry must balance.
Item 5
Paid $1,000 freight costs on purchase of new furniture.
Item 6
Paid $300 for staplers, trash cans, and desktop mats.
Item 7
Ordered new $50,000 truck, to be delivered and paid for in the future.
Item 8
Paid $10,000 of interest costs on loan on active building construction project.
Item 9
Paid $25,000 to expand parking lot paving.
Explanation / Answer
Item-1
Expense( Insurance Premium) A/c Dr.$2,500
Cash A/c Cr. $2,500
Item-2
Land Improvements A/c Dr.$7500
Cash A/c Cr. $7500
Item-3
Land A/c Dr.$500
Cash A/c Cr. $500
Item-4
Building A/c Dr.$150,000.
Cash A/c Cr.$150000
Note- Here Land and buidling are separetly valued but cash is paid less than $10000 .We have no other account to use from the list given above . As Building always include land value so We used Building account only with the cash paid.
Item-5
Expenses A/c Dr. ( Freight) $1000
Cash A/c Cr.$1000
Note- Here Furniture account need to be debited but this head is not listed so I used expenses account . Ofcourse this is not an equipment .
Item-6
Expenses ( Printing and stationary) A/c Dr.$300
Cash A/c Cr.$300
Item-7
No journal entry as no transaction take place just by giving order.
Item 8
Building A/c Dr.$10,000
Cash A/c Cr.$10,000
Item-9
Land Improvements A/c Dr. $25000
Cash A/c Cr $25000
Land Improvements A/c Dr. $25000
Cash A/c Cr $25000
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