Professional Documents
Culture Documents
E9-3:
(a)
Land
Cash price of property $80,000
Demolished cost of old warehouse 8,200
Attorney’s fees 1,900
Real estate broker’s fee 5,200
Less: Salvaged materials value $1,700
Cost of Land $93,600
(b) The architect fee should be debited to the building account. The cost of driveways and a
parking lot should be debited to land improvement account.
E9-8:
Jan. 1 Accumulated Depreciation 62,000
Machinery 62,000
P9-2A:
(a) Journalize 2018 transactions
Apr. 1 Land 2,200,00
0
Cash 2,200,000
P9-4A:
(a)
Apr. 1 Land 4,400,00
0
Cash 1,100,000
Notes Payable 3,300,000
(b)
Dec. Depreciation Expense ( $ 97,400,000 ÷ 40)
2,435,000
31
Accumulated Depreciation – Building 2,435,000
Dec. 9
Interest Expense ( $ 3,300,000× 6 % × ) 14,580,000
12
31
Interest Payable 14,580,000
Dec. 7
Interest Expense ( $ 2,700,000 ×5 % × ) 78,750,000
12
31
Interest Payable 78,750,000
(c)
Youngstown Company
Balance Sheet
December 31, 2017