On April 1, 2017, Swifty Company received a condemnation award of $490,200 cash

Question

On April 1, 2017, Swifty Company received a condemnation award of $490,200 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 $68,400 and $319,200, respectively, when they were acquired. At April 1, 2017, the accumulated depreciation relating to the building amounted to $182,400. On August 1, 2017, Swifty purchased a piece of replacement property for cash. The new land cost $102,600, and the new building cost $456,000 perty or cash. The new land cost s102.600. and the new buld Prepare the journal entries to record the transactions on April 1 and August 1, 2017. (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.) Date Account Titles and Explanation Debit Credit April 1 Cash Accumulated Depreciation-Building Land Buildings Gain on Disposal of Plant Assets Aug. 1Land ilitfi Cash

Explanation / Answer

Apr-01 Cash 490200 Accumulated Depreciation—Buildings 182400             Land 68400             Buildings 319200              Gain on Disposal of Plant Assets 285000 Aug-01 Land 102600 Buildings 456000              Cash 558600

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