question archive On July 1, 2017, Blossom Company received $814,000 cash as compensation for the forced sale (condemnation) of the company's land and building
On July 1, 2017, Blossom Company received $814,000 cash as compensation for the forced sale (condemnation) of the company's land and building
Subject:AccountingPrice:2.87 Bought7
On July 1, 2017, Blossom Company received $814,000 cash as compensation for the forced sale (condemnation) of the company's land and building. The state planned to use the property to build a new on-ramp for a nearby highway. The land and building cost $370,000 and $629,000, respectively, when they were acquired. At July 1, 2017, the accumulated depreciation relating to the building amounted to $277, 500. On December 1, 2017, Blossom purchased a piece of replacement property for cash. The new land cost $266, 400, and the new building cost $791, 800.
Prepare the journal entries to record the transactions on July 1 and December 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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Answer:
| Jul-01 | Cash | 814000 | |
| Accumulated Depreciation—Buildings | 277500 | ||
| Land | 370000 | ||
| Buildings | 629000 | ||
| Gain on Disposal of Plant Assets | 92500 | ||
| Dec-01 | Land | 266400 | |
| Buildings | 791800 | ||
| Cash | 1058200 |
