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(Solved): Part 3 of 3 5.16points eBook Print References Check my workCheck My Work button is now enabled Item ...
Part 3 of 3 5.16points eBook Print References Check my workCheck My Work button is now enabled Item 7 Required information Skip to question [The following information applies to the questions displayed below.] On January 1, Mitzu Company pays a lump-sum amount of $2,750,000 for land, Building 1, Building 2, and Land Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $840,000, with a useful life of 20 years and a $85,000 salvage value. Land Improvements 1 is valued at $300,000 and is expected to last another 10 years with no salvage value. The land is valued at $1,860,000. The company also incurs the following additional costs. Cost to demolish Building 1$ 344,400Cost of additional land grading193,400Cost to construct Building 3, having a useful life of 25 years and a $402,000 salvage value2,262,000Cost of new Land Improvements 2, having a 20-year useful life and no salvage value173,000 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were in use.
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Required Information
[The following Information applles to the questions displayed below.]
On January 1, Mitzu Company pays a lump-sum amount of $2,750,000 for land, Bullding 1, Bullding 2, and Land
Improvements 1. Bullding 1 has no value and will be demolished. Bullding 2 will be an office and is appralsed at $840,000,
with a useful life of 20 years and a $85,000 salvage value. Land Improvements 1 Is valued at $300,000 and is expected to
last another 10 years with no salvage value. The land is valued at $1,860,000. The company also incurs the following
additional costs.
Using the straight-line method, prepare the December 31 adjusting entrles to record depreclation for the first year these assets were
In use.
Record the year-end adjusting entry for the depreciation
expense of Building 2.
>
2 Record the year-end adjusting entry for the depreciation
expense of Building 3 .
building
3 Record the year-end adjusting entry for the depreciation
expense of Land Improvements 1.
4 Record the year-end adjusting entry for the depreciation
expense of Land Improvements 2.
Journal entry worksheet
Record the year-end adjusting entry for the depreciation expense of Building
Note: Enter debits before credits.
Journal entry worksheet
1
3
4
Record the year-end adjusting entry for the depreciation expense of Building
Note: Enter debits before credits.
Journal entry worksheet
2
3
4
Record the year-end adjusting entry for the depreciation expense of Land Improvements 1 .
Note: Enter debits before credits.
\table[[Date,General Journal],[Debit,Credit],[December 31,],[,],[,],[,],[,],[,],[,],[,],[,],[,],[,],[,]]
Journal entry worksheet
(1) 2,3,4
Record the year-end adjusting entry for the depreciation expense of Land
Improvem
