conet Edge CHAPTER 9 HOMEWORK PREVIOUS Problem 3:P9-32A Background: Elle Ichnson

Question

conet Edge CHAPTER 9 HOMEWORK PREVIOUS Problem 3:P9-32A Background: Elle Ichnson Associates surveys American eating habits. The company's 1) Using the General Journal tab, click Add Transaction to accounts indude Land, Buildings, Office Eguipment Equipment, with a separate Accumulated Depreciation account for each depreciable asset. Elie Jeheson Associates completed Assignment: journalize each transaction. Click Post Transaction once you complete the entry, then repeat these steps for each transaction. 2) Click the Reports tab and review the results of recording these the activities listed n the Transactions section below during 201S 3) Click Suabmit Work when complete Transactions: 01/01/2018 Purchased office equipment, $113,000. Paid $80,000 cash and financed the remainder with a note payable 04/01/2018 Acquired land and communication in a lump-sum purchase. Total cost was $310,000, paid in cash. An independent appraisal valued the land at $244,125 and the communication equipment at $81,375 09/01/2018 Sold a building that cost $520,000 (accumulated depr of $285,000 through December 31 of the $420,000 on is computed on a straight ine basis. The buailding has a January 1, 2018-December 31, 2018 anch the

Explanation / Answer

Date Accounts Title Dr Cr 1/1/2018 Office Equipment $113,000 Cash 80000 Notes Payable $33,000 (being office equipment purchased) 4/1/2018 Land (244125/325500*310000) 232500 Communication equipment/ Equipment(81375/325500*310000) 77500 Cash 310000 9/1/2018 As said in the question record the depreciation entry from 1 jan to 31 dec so amt accordingdly Depreciation expense 12375 Accumulated Depreciation-Building 12375 (520000-25000)/40 Cash 240000 Accumulated Depreciation-Building (285000+12375) 297375 Gain on sale of Buidling (bal fig) 17375 Building 520000 If we take deprecitiaon for 8 months than the answer would be Depreciation expense 8250 Accumulated Depreciation-Building 8250 (520000-25000)/40*8/12 Cash 240000 Accumulated Depreciation-Building (285000+8250) 293250 Gain on sale of Buidling (bal fig) 13250 Building 520000 12/31/2018 Depreciation expense 3875 Accumulated Depreciation-Communication Equipment 3875 (77500/5*3/12) 12/31 2018 Depreciation expense 45200 Accumulated Depreciation-Office Equipment 45200 (113000*40%) DDB rate=1/5*200% 40 % If any doubt please comment

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