Score: 0 of 3 pts 1 of 3 (0 complete) HW Score: 0%, 0 of 6 pts P9-32A (similar t

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Score: 0 of 3 pts 1 of 3 (0 complete) HW Score: 0%, 0 of 6 pts P9-32A (similar to) EQuestion Help Gloria Roper Associates surveys Amenican eating habts. The company's accounts include Land, Buildings, Office Equipment, and Communication Equipment, with a separate Accumulated Depreciation account for each depreciable asset During 2018, Gloria Roper Associates completed the following transactions (Click the icon to view the transactions Recard the transactions in the journal of Gloria Roper Associates. (Record debits frst, then credits. Select the explanation on the last line of the joumal entry table Jan 1: Purchased ofce equipment, $119,000 Paid ST8,000 cash and fnanced the remainder with a note payable (Record a single compound jourmal entry Date Accounts and Explanation Credit More Int Jan 1 e equipment cash and the Apr1 Acquired land and communication equipment in a lump-sum purchase Total cost was $420.000 paid in cash An independent appraisal valued the land at $330,70 and the communication eqipment at $110.260 Sep1 Sold a building that cost $580.000 (accumulated depreciation of $280,000 through December 31 of the preceding year). Gloria Roper Associates received $430,000 cash from the sale of the bulding Depreciation is computed on a straight-line basis The building has a 40 year usetul lide and a residual value of $40,000 Dec. 31 Recosded depreciation as follows Communication equipment is depreciated by the straight-line method over a five year lfe with zeno residual value Choose from any list or enter any number in the input felds and then click Check Answer Office equipment is depreciated using the double decining balance method over five s with a $2000 residual value Clear

Explanation / Answer

Jan 1     Office Equipment A/c      Dr                    $119000
                   To Cash A/c                                                   $78000
                   To Loan A/c                                                   $41000
           ( Being asset purchased and payment made partly by cash and financing)

Apr 1     Land A/c                      Dr               $315000   
            Comm. Equipment A/c    Dr              $105000
                   To Cash A/c                                                 $420000
           ( Being assets purchased and pyment made)

Sep 1    Cash A/c                     Dr                $430000
                  To Building A/c                       $291000               
                  To Profit on sale of Building A/c                      $139000
         ( Being building sold in cash and profit booked)
        (Dep. for the year = (580000-40000 )/ 40 *8/12=9000
         Value of building= 580000-280000-9000 = 291000)

Dec 31    Depreciation A/c         Dr      $15750
                  To Comm. Equipment A/c              $15750
         (Being depreciation charged on comm. equipment)

             Depreciation A/c          Dr       $46800
                  To Office Equipment A/c               $46800
        (Being depreciation on office equipment booked)

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