1.

JOURNAL ENTRIES
Debit Credit
1 Cash 1,700,000.00
Accumulated Depreciation - Building 450,000.00
Loss on Sale of Land and Building 150,000.00
Building 1,500,000.00
Land 800,000.00
*To record the sale of Land and Building
2 Cash 120,000.00
Depreciation Expense 10,000.00 *400,000(3/12)/10
Accumulated Depreciation - Equipment 240,000.00 *250000-10000
Loss on Sale of Equipment 30,000.00
Equipment 400,000.00
*To record the sale of Equipment
3 Equipment 296,500.00 *300000(98%)+1000+1500
Cash 296,500.00
*To record the purchase of new Equipment
4 Land 5,250,000.00
Cash 250,000.00
Donated Capital 5,000,000.00
*To record the receipt of donated Land
5 Building 400,000.00 *Refer to PIC Interpretation for Land and Building
Cash 400,000.00
By: JoshuaCPA
*To record demollition cost on the land
6 Equipment-New 150,000.00
Accumulated Depreciation - Equipment 15,000.00
Equipment-Old 40,000.00
Cash 100,000.00
Gain from Trade-in of Equipment 25,000.00
*To record the Trade-in of Eqipment
7 Building 2,800,000.00
Cash 2,800,000.00
*To record the costruction of new Building
8 Equipment 50,000.00
Cash 50,000.00
*To record the incurrence of extraordinary repairs
9 Depreciation Expense 113,197.22
Accumulated Depreciation - Equipment 50,975.00 *[(700000-400000-40000)/10]+[(296500/10)*8/12]+[(50000/10)*6.5/12]+[(150000/10)*2/12]
Accumulated Depreciation - Building 62,222.22 *[(400000+2800000)/30]*7/12
*To record the Depreciation Expense for 2020

2. Gain or Loss on sale and Trade-in 25,000.00

3. Balance Sheet Presentation of PPE

Land 5,250,000.00
Building 3,200,000.00
less: Accumulated Depreciation 62,222.22 3,137,777.78
Equipment 756,500.00
less: Accumulated Depreciation 195,975.00 560,525.00
NET PROPERTY, PLANT AND EQUIPMENT 8,948,302.78 By: JoshuaCPA