Purchase Solution

Company A Disposal of land and building with a mortgage invo

Not what you're looking for?

Ask Custom Question

On January 1, 2001, Company A buys a Building and Land totaling $50,000 ($30,000 and $20,000 respectively) by placing a down payment of $10,000, and a mortgage payable of 40,000.

December 31, 2001 - the depreciation method used is straight-line, the residual value of the building is $5,000, and the life of the building is 16 years.

June, 1, 2002 - Company A sells the Land and Building for 60,000. Journalize the transactions.

Purchase this Solution
Solution Summary

Your tutorial (attached) shows all the entries and instructional notes.

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Motivation

This tests some key elements of major motivation theories.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

View More Free Quizzes
Related BrainMass Solutions

  • Key Accounting concepts

    Use the following data for questions 1 and 2 below: Quinn Company bought real estate, on which there was an old office building, for $400,000. They paid $40,000 in cash as a down payment and signed a 10% mortgage for the remainder.

  • Robertson Inc: Property Plant & Equipment loss on disposal

    A tract of land was acquired for$150,000 as a potential building site.` ii. A plant facility consisting of land and building was acquired from Pellium Company in exchange for 20,000 shares of Robertson's commons stick.

  • Various finance questions ("Other receivables", adjustments to record bad debts, Winter Furniture, recording the cost of land and more...)

    A company purchased land for $80,000 cash. Real estate brokers' commission was $5,000 and $7,000 was spent for demolishing an old building on the land before construction of a new building could start.

  • Shelby's, Inc. v. Sierra Bravo, Inc

    154514 An analyis of the case between Bravo Company and Shelby Company Bravo Company#1, and Shelby Company#2., entered into a written "Waste Disposal Agreement" under which Shelby's allowed Bravo to deposit on Shelby's land waste products, deleterious

  • Journaling assets accounting 101

    The assets include pool furniture, $3,800; the pool/slide facility(includes filter system, pools, pump, and slides), $148,800; building, $96,200; and land, $292,000. Paid $120,000 down and signed a mortgage note for the remainder.

  • Prepare Journal Entries & Expenditure

    of land and purchase of equipment along with deciding which expenditures to capitalize and how to account for sales of land and buildings.

  • Financial Statements for Max Company

    817,000 Investment in IBM is considered to be long-term The current portion of the mortgage payable is $14,000 The note payable matures on 9/15/05 Part A: Prepare the Financial Statements for July 2005: Income

  • Multiple Choice

    d. percentage of receivables and percentage of sales. 8. A company purchased land for $80,000 cash.

  • Multiplec choice accounting questions.

    The problems deal with working capital, income statement, and ratios etc

View More Related Solutions