Indicate for each transaction the account(s) and amount(s) that should be debited and credited. a. On January 1, 2014 purchased land with a usable office building there on for cash of P2,000,000. Tax assessment values: Land, P200,000; Building, P600,000; b. January 1, 2015, purchased land for future building site for a cash of P400,000; an old building on this site, appraised at P20,000 at the date of purchase, is to be torn down immediately.
Indicate for each transaction the account(s) and amount(s) that should be debited and credited. a. On January 1, 2014 purchased land with a usable office building there on for cash of P2,000,000. Tax assessment values: Land, P200,000; Building, P600,000; b. January 1, 2015, purchased land for future building site for a cash of P400,000; an old building on this site, appraised at P20,000 at the date of purchase, is to be torn down immediately.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Indicate for each transaction the account(s) and amount(s) that should be debited and credited.
a. On January 1, 2014 purchased land with a usable office building there on for cash of P2,000,000. Tax assessment values: Land, P200,000; Building, P600,000;
b. January 1, 2015, purchased land for future building site for a cash of P400,000; an old building on this site, appraised at P20,000 at the date of purchase, is to be torn down immediately.
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