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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

FINANCIAL ACCOUNTING
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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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
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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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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