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.© BrainMass Inc. brainmass.com June 4, 2020, 3:25 am ad1c9bdddf
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