Early in its fiscal year ending December 31, 2013, San Antonio Outfitters finalized plans to expand operations. The first stage was completed on April 25th with the purchase of a tract of land on the outskirts of the city. The land and existing building were purchased for $800,000. San Antonio paid $200,000 and signed a noninterest-bearing note requiring the company to pay the remaining $600,000 on March 28, 2015. An interest rate of 8% properly reflects the time value of money for this type of loan agreement. Title search, insurance, and other closing costs totaling $20,000 were paid at closing. Below is the trial balance for San Antonio Outfitters as of March 31.SAN ANTONIO OUTFITTERSTrial BalanceMarch 31, 20XX Debit Credit Cash ..........................................................................................$3,394,380 Accounts receivable ...............................................................2,129,500 Prepaid insurance ...................................................................42,300 Office equipment ....................................................................119,300 Accumulated Depreciation, Office Equipment .................. $11,750 Inventory .................................................................................2,104,000 Building ...................................................................................100,000 Land..........................................................................................720,000 Accounts payable ................................................................... $ 104,410Notes payable.......................................................................... 600,000San Antonio, Capital .............................................................. 2,541,700San Antonio, Withdrawals ....................................................10,450 Revenue ................................................................................... 6,144,100Wages expense ........................................................................654,500 Depreciation Expense, Office Equipment ...........................4,250 Equipment rental expense .....................................................71,410 Office Supplies Expense ........................................................7,500 Advertising expense...............................................................32,400 Repairs expense ...................................................................... 11,970 Totals ........................................................................................$9,401,860$9,401,860During April, the old building was demolished at a cost of $70,000, and an additional $50,000 was paid to clear and grade the land. Construction of a new building began on May 1 and was completed on October 29. Construction expenditures were as follows:May 30 : 1,200,000July 30: 1,500,000Sept.1: 900,00Oct 1: 1,800,000 San Antonio borrowed $3,000,000 at 8% on May 25 to help finance construction. This loan, plus interest, will be paid in 2014. In November, the company purchased 10 identical pieces of equipment and office furniture and fixtures for a lump-sum price of $600,000 on the account. The fair values of the equipment and the furniture and fixtures were $455,000 and $145,000, respectively. In December, San Antonio paid a contractor $285,000 for the construction of parking lots and for landscaping. Prepare the all associated journal entries using double entry accounting methods. Your debits and credits should equal and the entries should have proper impact on the accounts that are being used. and adjust the account balances?How do I adjust the account balance?How do I make it into an income statement and balance sheet?What information am I including on it?

Date Particulars Debit $ Credit $ 25-04-2013 (Debit )Land and building a/c 800000…

Answered: March 31, 20XX…

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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Early in its fiscal year ending December 31, 2013, San Antonio Outfitters finalized plans to expand operations. The first stage was completed on April 25^th with the purchase of a tract of land on the outskirts of the city. The land and existing building were purchased for $800,000. San Antonio paid $200,000 and signed a noninterest-bearing note requiring the company to pay the remaining $600,000 on March 28, 2015. An interest rate of 8% properly reflects the time value of money for this type of loan agreement. Title search, insurance, and other closing costs totaling $20,000 were paid at closing. Below is the trial balance for San Antonio Outfitters as of March 31.

SAN ANTONIO OUTFITTERS Trial Balance March 31, 20XX	Debit	Credit
Cash ..........................................................................................	$3,394,380
Accounts receivable ...............................................................	2,129,500
Prepaid insurance ...................................................................	42,300
Office equipment ....................................................................	119,300
Accumulated Depreciation, Office Equipment ..................		$11,750
Inventory .................................................................................	2,104,000
Building ...................................................................................	100,000
Land..........................................................................................	720,000
Accounts payable ...................................................................		$ 104,410
Notes payable..........................................................................		600,000
San Antonio, Capital ..............................................................		2,541,700
San Antonio, Withdrawals ....................................................	10,450
Revenue ...................................................................................		6,144,100
Wages expense ........................................................................	654,500
Depreciation Expense, Office Equipment ...........................	4,250
Equipment rental expense .....................................................	71,410
Office Supplies Expense ........................................................	7,500
Advertising expense...............................................................	32,400
Repairs expense ......................................................................	11,970
Totals ........................................................................................	$9,401,860	$9,401,860

During April, the old building was demolished at a cost of $70,000, and an additional $50,000 was paid to clear and grade the land. Construction of a new building began on May 1 and was completed on October 29. Construction expenditures were as follows:

May 30 : 1,200,000

July 30: 1,500,000

Sept.1: 900,00

Oct 1: 1,800,000

San Antonio borrowed $3,000,000 at 8% on May 25 to help finance construction. This loan, plus interest, will be paid in 2014. In November, the company purchased 10 identical pieces of equipment and office furniture and fixtures for a lump-sum price of $600,000 on the account. The fair values of the equipment and the furniture and fixtures were $455,000 and $145,000, respectively. In December, San Antonio paid a contractor $285,000 for the construction of parking lots and for landscaping.

Prepare the all associated journal entries using double entry accounting methods. Your debits and credits should equal and the entries should have proper impact on the accounts that are being used. and adjust the account balances?

How do I adjust the account balance?

How do I make it into an income statement and balance sheet?

What information am I including on it?

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