On April 1, 2025, Marigold Company received a condemnation award of $464,400 cash as compensation for the forced sale of the company's land and building, which stood in the path of a new state highway. The land and building cost $64,800 and $302,400, respectively, when they were acquired. At April 1, 2025, the accumulated depreciation relating to the building amounted to $172,800. On August 1, 2025, Marigold purchased a piece of replacement property for cash. The new land cost $97,200, and the new building cost $432,000. Prepare the journal entries to record the transactions on April 1 and August 1, 2025. (Record journal entries in the order presented in the problem. 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. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit
On April 1, 2025, Marigold Company received a condemnation award of $464,400 cash as compensation for the forced sale of the company's land and building, which stood in the path of a new state highway. The land and building cost $64,800 and $302,400, respectively, when they were acquired. At April 1, 2025, the accumulated depreciation relating to the building amounted to $172,800. On August 1, 2025, Marigold purchased a piece of replacement property for cash. The new land cost $97,200, and the new building cost $432,000. Prepare the journal entries to record the transactions on April 1 and August 1, 2025. (Record journal entries in the order presented in the problem. 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. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
None
Transcribed Image Text:On April 1, 2025, Marigold Company received a condemnation award of $464,400 cash as compensation for the forced sale of the
company's land and building, which stood in the path of a new state highway. The land and building cost $64,800 and $302,400,
respectively, when they were acquired. At April 1, 2025, the accumulated depreciation relating to the building amounted to $172,800.
On August 1, 2025, Marigold purchased a piece of replacement property for cash. The new land cost $97,200, and the new building
cost $432,000.
Prepare the journal entries to record the transactions on April 1 and August 1, 2025. (Record journal entries in the order presented in the
problem. 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. List all debit entries before credit entries.)
Date
Account Titles and Explanation
Debit
Credit
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education