Prepare the journal entry to record the purchase of the property, including all relevant expenditures... oro for cach and that all
Prepare the journal entry to record the purchase of the property, including all relevant expenditures... oro for cach and that all
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
Shahia Company bought a building for $73,000 cash and the land on which it was located for $126,000 cash. The
company paid transfer costs of $11,000 ($5,000 for the building and $6,000 for the land). Renovation costs on the building
before it could be used were $30,000.
Required:
1. Prepare the journal entry to record the purchase of the property, including all relevant expenditures. Assume that all transactions
were for cash and that all purchases occurred at the start of the year.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
View transaction list
Journal entry worksheet
<
1
Record the purchase of property, including all expenditures, paid with cash.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
a
Building
Land
Cash
27
Check my work](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbc8565a6-cd19-439c-b317-f5cfba4b5f54%2F5bafcab9-9cbd-430e-8c2f-f49533d87153%2Fsy983h5_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Shahia Company bought a building for $73,000 cash and the land on which it was located for $126,000 cash. The
company paid transfer costs of $11,000 ($5,000 for the building and $6,000 for the land). Renovation costs on the building
before it could be used were $30,000.
Required:
1. Prepare the journal entry to record the purchase of the property, including all relevant expenditures. Assume that all transactions
were for cash and that all purchases occurred at the start of the year.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
View transaction list
Journal entry worksheet
<
1
Record the purchase of property, including all expenditures, paid with cash.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
a
Building
Land
Cash
27
Check my work
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