On April 1, 2025, Wildhorse Company received a condemnation award of $584,800 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 $81,600 and $380,800, respectively, when they were acquired. At April 1, 2025, the accumulated depreciation relating to the building amounted to $217,600 On August 1, 2025, Wildhorse purchased a piece of replacement property for cash. The new land cost $122,400, and the new building cost $544,000. Prepare the journal entries to record the transactions on April 1 and August 1, 2025. (Record journal entries in the order presented in the
On April 1, 2025, Wildhorse Company received a condemnation award of $584,800 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 $81,600 and $380,800, respectively, when they were acquired. At April 1, 2025, the accumulated depreciation relating to the building amounted to $217,600 On August 1, 2025, Wildhorse purchased a piece of replacement property for cash. The new land cost $122,400, and the new building cost $544,000. Prepare the journal entries to record the transactions on April 1 and August 1, 2025. (Record journal entries in the order presented in the
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On April 1, 2025, Wildhorse Company received a condemnation award of $584,800 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 $81,600 and $380,800,
respectively, when they were acquired. At April 1, 2025, the accumulated depreciation relating to the building amounted to $217,600.
On August 1, 2025, Wildhorse purchased a piece of replacement property for cash. The new land cost $122,400, and the new building
cost $544,000.
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
Apr. 1
Aug. 1
Account Titles and Explanation
12032
2
222
2
Debit
Credit
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