Apps Bookmarks ESCI 111 Quiz 1 The following information applies to the question

Question

Apps Bookmarks ESCI 111 Quiz 1 The following information applies to the questions displayed below Bridge City Consulting bought a building and the land on which it is located for $135,000 cash. The land is estimated to represent 50 percent of the purchase price. The company paid $6.000 for building renovations before it was ready for use References Section Break E9-2 Computing and Recording a Basket Purchase and Straight-Line Deprecistion LO 9-2 LO 9-3 0.52 polnts E9-2 Part 2 2. Prepare the journal entry to record all expenditures. Assume that all transactions were for cash and they ocourred at the start of the year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet Land 67,500 3.500 Cash 141,000 sc F3

Explanation / Answer

3. Depriciation on Building by Straight Line Method.

Purchase amount of machine = 73500

Depriciable amount = 73500 - slavage value

= 73500 - 4000 = 69500

And Estimated Useful Life is 10 years So Rate of Depriciation is 10%

Depriciation on building is = Depriciable amount * Rate of Depriciation

= 69500 * 10% =6950

(4). (a) Book Value of Land at the of Second Year is = 67500 (remains the same)

(b) Book Value of Building at the End of Second year is = 73500-depriciation for 1st -Depriciation for 2nd year

=73500 - 6950 - 6950

= 59600.

PLEASE LIKE MY ANSWER (GOOD LUCK), THANK YOU

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.