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I need the debit and credit of the accounts Information given Land- 6,304, 800 Notes payable- 5,569,240

I need the debit and credit of the accounts Information given Land- 6,304, 800 Notes payable- 5,569,240

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I need the debit and credit of the accounts

Information given

Land- 6,304, 800

Notes payable- 5,569,240

PPE- 

Adjusting Entry Information No depreciation has been recorded on the company's Land or new PPE. GADI Inc.'s accounting staff believes that the Land has a useful life of 30 years with a $630,480 salvage value. They also believe that the new PPE has a remaining useful life of 21 years with a $147,375 salvage value. When calculating depreciation, keep in mind that GADI Inc. does not use partial year depreciation. They record a full year of depreciation, regardless of when an asset was purchased. HINT: New PPE is the amount added this year, and is shown as the debit below the beginning balance of the Warehouses account! GADI Inc. recorded and paid interest on all of their outstanding notes 5 months ago. Payments are due on the notes every 6 months, and the interest rate on both notes is 6.5% (they were issued by the same bank with the same terms, just 2 years apart). Unlike the federal government, the state where GADI Inc. does business charges property taxes instead of an income tax. These taxes are charged on an assessed market value assigned by the government for tax purposes; the assessed value does not match what GADI Inc. actually paid for the assets. In fact, the assessed value comes out to 57% of the book value (historical costs - accumulated deprecation, if any) of the company's land owned at the end of the fiscal year. The property tax rate for 2022 is 4%. The taxes will be paid when they are due on March 1, 2023. K
Transcribed Image Text:Adjusting Entry Information No depreciation has been recorded on the company's Land or new PPE. GADI Inc.'s accounting staff believes that the Land has a useful life of 30 years with a $630,480 salvage value. They also believe that the new PPE has a remaining useful life of 21 years with a $147,375 salvage value. When calculating depreciation, keep in mind that GADI Inc. does not use partial year depreciation. They record a full year of depreciation, regardless of when an asset was purchased. HINT: New PPE is the amount added this year, and is shown as the debit below the beginning balance of the Warehouses account! GADI Inc. recorded and paid interest on all of their outstanding notes 5 months ago. Payments are due on the notes every 6 months, and the interest rate on both notes is 6.5% (they were issued by the same bank with the same terms, just 2 years apart). Unlike the federal government, the state where GADI Inc. does business charges property taxes instead of an income tax. These taxes are charged on an assessed market value assigned by the government for tax purposes; the assessed value does not match what GADI Inc. actually paid for the assets. In fact, the assessed value comes out to 57% of the book value (historical costs - accumulated deprecation, if any) of the company's land owned at the end of the fiscal year. The property tax rate for 2022 is 4%. The taxes will be paid when they are due on March 1, 2023. K
Expert Solution
Step 1

Account balances is the balance with is in the respective ledger account and company knows very well that the debit and credit notation of the balances represent the balance of the accounts.

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