On July 1, 2017, Carla Vista Company received $990,000 cash as compensation for the forced sale (condemnation) of the company's land and building. The state planned to use the property to build a new on-ramp for a nearby highway. The land and building cost $450,000 and $765,000, respectively, when they were acquired. At July 1, 2017, the accumulated depreciation relating to the building amounted to $337,500. On December 1, 2017, Carla Vista purchased a piece of replacement property for cash. The new land cost $324,000, and the new building cost $963,000. Prepare the journal entries to record the transactions on July 1 and December 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 1 December 1
On July 1, 2017, Carla Vista Company received $990,000 cash as compensation for the forced sale (condemnation) of the company's land and building. The state planned to use the property to build a new on-ramp for a nearby highway. The land and building cost $450,000 and $765,000, respectively, when they were acquired. At July 1, 2017, the accumulated depreciation relating to the building amounted to $337,500. On December 1, 2017, Carla Vista purchased a piece of replacement property for cash. The new land cost $324,000, and the new building cost $963,000. Prepare the journal entries to record the transactions on July 1 and December 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 1 December 1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![On July 1, 2017, Carla Vista Company received $990,000 cash as compensation for the forced sale (condemnation) of the company's
land and building. The state planned to use the property to build a new on-ramp for a nearby highway. The land and building cost
$450,000 and $765,000, respectively, when they were acquired. At July 1, 2017, the accumulated depreciation relating to the building
amounted to $337,500. On December 1, 2017, Carla Vista purchased a piece of replacement property for cash. The new land cost
$324,000, and the new building cost $963,000.
Prepare the journal entries to record the transactions on July 1 and December 1, 2017. (Credit account titles are automatically indented
when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
July 1
December 1](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3b13995d-9425-44a6-84e9-644f4357c0b0%2F53b1e20f-0840-41ae-8505-21db38d28fc7%2F6qff1x_processed.png&w=3840&q=75)
Transcribed Image Text:On July 1, 2017, Carla Vista Company received $990,000 cash as compensation for the forced sale (condemnation) of the company's
land and building. The state planned to use the property to build a new on-ramp for a nearby highway. The land and building cost
$450,000 and $765,000, respectively, when they were acquired. At July 1, 2017, the accumulated depreciation relating to the building
amounted to $337,500. On December 1, 2017, Carla Vista purchased a piece of replacement property for cash. The new land cost
$324,000, and the new building cost $963,000.
Prepare the journal entries to record the transactions on July 1 and December 1, 2017. (Credit account titles are automatically indented
when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
July 1
December 1
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