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

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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Question

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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

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