Listed below are nine fixed asset transactions. Record the journal entries. Date
ID: 2420507 • Letter: L
Question
Listed below are nine fixed asset transactions. Record the journal entries. Dates and descriptions are not required. The only account titles you will need are listed: Account titles: Cash Land Land Improvements Building Equipment Expense (determine expense account title) Prepaid account (determine full account title) Item 1 Paid $2,500 for one year insurance coverage on equipment Item 2 Paid $7,500 for trees and shrubs Item 3 Paid $500 attorney's fees for document preparation related to land purchase Item 4 Paid $ 150,000 for land and building. The land was separately valued at $40,000 and the building at $120,000. Hint - the cash is only $150,000 and the entry must balance. Item 5 Paid $1,000 freight costs on purchase of new furniture Item 6 Paid $300 for staplers, trash cans, and desktop mats. Item 7 Ordered new $50,000 truck, to be delivered and paid for in the future Item8 Paid $10,000 of interest costs on loan on active building construction project Item 9 Paid $25,000 to expand parking lot paving Item 1 Item 2 Item 3 Item 4 Item 5 Item 6 Item 7 Item 8 Item 9Explanation / Answer
Description
Debit
Credit
Item 1
Insurance expense
2500
Cash
2500
Item 2
Trees and shrubs
7500
Cash
7500
Item 3
Land improvements
500
Cash
500
Item 4
Land
40000
Building
120000
Cash
150000
Item 5
Furniture
1000
Cash
1000
Item 6
Office expense
3000
Cash
3000
Item 7
Truck
50000
Account receivable
50000
Item 8
Building
10000
Cash
10000
Item 9
Land improvements
25000
Cash
25000
Description
Debit
Credit
Item 1
Insurance expense
2500
Cash
2500
Item 2
Trees and shrubs
7500
Cash
7500
Item 3
Land improvements
500
Cash
500
Item 4
Land
40000
Building
120000
Cash
150000
Item 5
Furniture
1000
Cash
1000
Item 6
Office expense
3000
Cash
3000
Item 7
Truck
50000
Account receivable
50000
Item 8
Building
10000
Cash
10000
Item 9
Land improvements
25000
Cash
25000
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