question archive On April 1, 2014, Gloria Estefan Company received a condemnation award of $683,700 cash as compensation for the forced sale of the company's land and building, which stood in the path of a new state highway
On April 1, 2014, Gloria Estefan Company received a condemnation award of $683,700 cash as compensation for the forced sale of the company's land and building, which stood in the path of a new state highway
Subject:AccountingPrice:3.87 Bought7
On April 1, 2014, Gloria Estefan Company received a condemnation award of $683,700 cash as compensation for the forced sale of the company's land and building, which stood in the path of a new state highway. The land and building cost $95,400 and $445,200, respectively, when they were acquired. At April 1, 2014, the accumulated depreciation relating to the building amounted to $254,400. On August 1, 2014, Estafan purchased a piece of replacement property for cash. The new land cost $143,100, and the new building cost $636,000.
Prepare the journal entries to record the transactions on April 1 and August 1, 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Answer:
| Date | Particulars | Debit | Credit |
| April 1 | Cash | 683,700 | |
| Accumulated Depreciation | 254,500 | ||
| Land | 95,400 | ||
| Building | 445,200 | ||
| Profit on sale of fixed assets | 397,600 | ||
| ( Being sale of asset recoreded ) | |||
| August 1 | Land | 143,100 | |
| Building | 636,000 | ||
| Cash | 779,100 | ||
| ( Being purchase of fixed assets recorded ) |
