On April 1, 2020, Concord Company received a notice from the government that a new highway was being built and that land and a building owned by the company were going to be claimed in the process. The company employed an appraiser and estimated that the land had a fair value of $ 129,960 and the building had a fair value of $ 438,900. On April 30, 2022, after some negotiations, Concord received a condemnation award of $ 592,800 cash as compensation for the forced sale of the company's land and building. The land and building cost $ 136,800 and $ 684,000, respectively, when they were acquired. On January 1, 2022, the accumulated depreciation relating to the building amounted to $ 237,120. On April 30, the accumulated depreciation relating to the building was $ 239,400. On August 1, 2022, Concord purchased a piece of replacement property for cash. The new land cost $ 102,600, and the new building cost $ 433,200. Prepare the journal entries to record the transactions on January 1, April 30, and August 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Date
Account Titles and Explanation
Debit
Credit
Jan. 1
April 30
Aug. 1
Transcribed Image Text:Date Account Titles and Explanation Debit Credit Jan. 1 April 30 Aug. 1
On April 1, 2020, Concord Company received a notice from the government that a new highway was being built and that land and a
building owned by the company were going to be claimed in the process. The company employed an appraiser and estimated that the
land had a fair value of $ 129,960 and the building had a fair value of $ 438,900. On April 30, 2022, after some negotiations, Concord
received a condemnation award of $ 592,800 cash as compensation for the forced sale of the company's land and building. The land
and building cost $ 136,800 and $ 684,000, respectively, when they were acquired. On January 1, 2022, the accumulated depreciation
relating to the building amounted to $ 237,120. On April 30, the accumulated depreciation relating to the building was $ 239,400. On
August 1, 2022, Concord purchased a piece of replacement property for cash. The new land cost $ 102,600, and the new building cost
$ 433,200.
Prepare the journal entries to record the transactions on January 1, April 30, and August 1, 2022. (Credit account titles are automatically
indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the
amounts.)
Transcribed Image Text:On April 1, 2020, Concord Company received a notice from the government that a new highway was being built and that land and a building owned by the company were going to be claimed in the process. The company employed an appraiser and estimated that the land had a fair value of $ 129,960 and the building had a fair value of $ 438,900. On April 30, 2022, after some negotiations, Concord received a condemnation award of $ 592,800 cash as compensation for the forced sale of the company's land and building. The land and building cost $ 136,800 and $ 684,000, respectively, when they were acquired. On January 1, 2022, the accumulated depreciation relating to the building amounted to $ 237,120. On April 30, the accumulated depreciation relating to the building was $ 239,400. On August 1, 2022, Concord purchased a piece of replacement property for cash. The new land cost $ 102,600, and the new building cost $ 433,200. Prepare the journal entries to record the transactions on January 1, April 30, and August 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Sales and Other Dispositions of Assets
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education