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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
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
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