Explore BrainMass

Explore BrainMass

    Keona Co: calculate costs incurred, journal entry and adjusting entries to record depreciation

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    In January of 2005 Keona Co pays 2800000 for a tract of land with two buildings on it. it plans to demolish building one and build a new store. Building two will be a company office it is appraised at 641300 with a usefull life of 20 years and an 80000 salvage value. Without the buildings and improvements the tract of land is valued at 1865600 Keona also has the followin costs
    demolish building 1 422600
    grading cost 167200
    cost of new buil
    construction 219000
    cost of new land
    improvements 158000

    1. prepare a table with the following column headings Land, Building 2, Building 3, Land improv 1, Land Improvments 2. Allocate the costs incurred by Keona to the appropriate columns and total each column ( round percents to the nearest 1%)

    2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on Jan 1 2005

    3. Using the straight line method prepare dec 31 adjusting entries to record depreciation for the 12 months of 2005 when these assets where in use

    © BrainMass Inc. brainmass.com October 2, 2022, 6:15 pm ad1c9bdddf

    Solution Summary

    You will find the answer to this puzzling question inside (complete with necessary table).