Make a journal entry for the building was purchased

Assignment Help Accounting Basics
Reference no: EM132731237

Problem 1: Make a journal entry for the following:

1) Allowance for Doubtful Accounts is estimated to be 6% of Accounts Receivable.

2) The building was purchased on 9/30/19 with a Bond issued at par value for $250 000. The bond requires semi-annual interest payments at 8%, starting on March 31, 2020.

a. record the building purchase

b. record interest on the bond that is accrued but not yet paid.

3) The building purchased in #2 will be depreciated over 25 years with an estimated salvage value of $50,000.

4) Equipment costing $30,000 was disposed on 12/31/19. The accumulated depreciation for the equipment was $25,000.

Reference no: EM132731237

Questions Cloud

What forums can facilitate communication of information : -Which tools should be considered when developing procedures relating to hazard identification and risk assessment?
Consequences of a hazard in relation to risk assessment : What are the consequences of a hazard in relation to risk assessment? What are the ratings given to likelihood in risk assessment?
Calculate the amount of bad debts expense : R? & S Commercial, Management estimates that 6?% of net credit sales will be uncollectible. Calculate the amount of bad debts expense for 2025.
Explain what you hoped to learn from completing the lab : Explain what you hoped to learn from completing this lab but didn't learn. Recommend how this lab could be modified or what it could be replaced with to better.
Make a journal entry for the building was purchased : Make a journal entry for the building was purchased on 9/30/19 with a Bond issued at par value for $250 000. The bond requires semi-annual interest
Competing in different product markets : A corporate-level strategy specifies actions taken by the firm to gain a competitive advantage by selecting and managing a group of different business
How you might improve the patients drug therapy plan : Patient HM has a history of atrial fibrillation and a transient ischemic attack (TIA). The patient has been diagnosed with type 2 diabetes, hypertension.
Discuss the benefits of making lifetime transfers : Discuss the benefits of making lifetime transfers for IHT purposes and how such transfers can affect the tax on the estate at death.
Compute the tax burden for the first year : Compute the tax burden for the first year if Tinker Family Corporation does not have an S election in effect and distributes a $100 annual dividend per share.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Create merchandise purchases budget for november

Prepare Merchandise Purchases Budget for November and December.Prepare Schedule of Expected Cash Collections for November and December.

  Prepare the april and june entries for tamarisk

Tamarisk Mining Company declared, on April 20, a dividend of $582,000 payable on June 1. Prepare the April 20 and June 1 entries for Tamarisk

  How much would be shown as investment property

The accumulated depreciation at the beginning of the year is 480,000. How much would be shown as investment property in ABC's 2016 Financial Statements?

  Prescott inc uses standard costing for its one product

prescott inc. uses standard costing for its one product baseball bats. the standards call for 3 board-feet of wood at

  Calculate the predetermined overhead rate

Calculate the predetermined overhead rate or overhead allocation rate for each of the following different allocation bases

  What is the total amount due

The following information is provided on delivery invoice. What is the total amount due

  Calculate Canyon Drillings after tax weighted average cost

What is the component cost of capital for the firm? Calculate Canyon Drilling's after tax weighted average cost of capital, using the information above

  How should the firm account for the traditional

How should the firm account for the traditional equity-based compensation plan and the new compensation plan? Cite ASC where appropriate.

  Sanford elect to treat as a section 179 expense

In 2013, Sanford Corporation purchases and places in service $2,050,000 of equipment for its manufacturing business. What portion of the $2,050,000 may Sanford elect to treat as a Section 179 expense?

  What amount would be reported as total owners equity

What amount would be reported as total owners' equity immediately after the investments? K. Billie, S. Piper, and E. Rose are forming a partnership

  Find an estimated life of ten years

Brave Industries is considering buying a machine for $180,000 with an estimated life of ten years and no salvage value. The straight-line method of depreciation will be used. The machine is expected to generate net income of $12,000 each year. The..

  Preparing an Income Statement for the period

Assuming that Inventory on 31 December 20X8 is $5,130. Preparing an Income Statement for the period. Preparing a Trial Balance as at 31 December 20X8

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd