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    Company A Disposal of land and building with a mortgage invo

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    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.

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    https://brainmass.com/business/accounting/company-disposal-land-building-mortgage-invo-514528

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