Bridge City Consulting bought a building and the land on which it is located for

Question

Bridge City Consulting bought a building and the land on which it is located for $155,000 cash. The land is estimated to represent 70 percent of the purchase price. The company paid $10,000 for building renovations before it was ready for use. 1. Required: 2. Prepare the journal entry to record all expenditures. Assume that all transactions were for cash and they occurred at the start of the year. (If no entry is required for a transactionievent, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record all expenditures for the land and buildings ocurmend at the stsartior the yeap.id for with cash and Note: Enter debits before credits. nsactio General Journal Debit Record entry Clear entry View general journal

Explanation / Answer

Req 1 Journal entries Land Dr. 108500 Building Dr. 46500         Cash Account 155000 Building Dr. 10000       Cash Account 10000 Req 3: Cost of Building (46500+10000) 56500.00 Less: Salvage value 16500.00 Depreciable amount 40000.00 Divide: life of Building 0 Annual depreciation 4000 Req 4: Book value at end of Year-2 Land 108500 Building 56500 Less: Acumulated Depreciation 8000 48500 Total Land and buiding 157000

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