Required information [The following information applies to the questions displayed below] On January 1, Mitzu Company pays a lump sum amount of $2,600,000 for land, Building 1, Building 2, and Land Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $644,000, with a useful life of 20 years and a $60,000 salvage value. Land Improvements 1 is valued at $420,000 and is expected to last another 12 years with no salvage value. The land is valued at $1736,000. The company also incurs the following additional costs. Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $392,000 salvage value Cost of new Land Improvements 2, having a 20-year useful life and no salvage value 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1 $ 328,400 175,400 2,202,000 164,000
Required information [The following information applies to the questions displayed below] On January 1, Mitzu Company pays a lump sum amount of $2,600,000 for land, Building 1, Building 2, and Land Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $644,000, with a useful life of 20 years and a $60,000 salvage value. Land Improvements 1 is valued at $420,000 and is expected to last another 12 years with no salvage value. The land is valued at $1736,000. The company also incurs the following additional costs. Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $392,000 salvage value Cost of new Land Improvements 2, having a 20-year useful life and no salvage value 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1 $ 328,400 175,400 2,202,000 164,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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art 2 of 3
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Required information
[The following information applies to the questions displayed below.]
On January 1, Mitzu Company pays a lump sum amount of $2,600,000 for land, Building 1, Building 2, and Land
Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $644,000,
with a useful life of 20 years and a $60,000 salvage value. Land Improvements 1 is valued at $420,000 and is expected to
last another 12 years with no salvage value. The land is valued at $1,736,000. The company also incurs the following
additional costs.
Cost to demolish Building 1
Cost of additional land grading
Cost to construct Building 3, having a useful life of 25 years and a $392,000 salvage value
Cost of new Land Improvements 2, having a 20-year useful life and no salvage value
2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1
View transaction list
Journal entry worksheet
Record the cost of the plant assets, paid in cash.
$ 328,400
175,400
2,202,000
164,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8d0e6bf9-348c-40ab-ae4c-488cbc0bf710%2F3fb415b8-2a88-49e7-b0ac-de8980c735bf%2Fo8f87r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:5
art 2 of 3
Skipped
+Book
Prat
ferences
Required information
[The following information applies to the questions displayed below.]
On January 1, Mitzu Company pays a lump sum amount of $2,600,000 for land, Building 1, Building 2, and Land
Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $644,000,
with a useful life of 20 years and a $60,000 salvage value. Land Improvements 1 is valued at $420,000 and is expected to
last another 12 years with no salvage value. The land is valued at $1,736,000. The company also incurs the following
additional costs.
Cost to demolish Building 1
Cost of additional land grading
Cost to construct Building 3, having a useful life of 25 years and a $392,000 salvage value
Cost of new Land Improvements 2, having a 20-year useful life and no salvage value
2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1
View transaction list
Journal entry worksheet
Record the cost of the plant assets, paid in cash.
$ 328,400
175,400
2,202,000
164,000
Transcribed Image Text:Journal entry worksheet
<
1
Record the cost of the plant assets, paid in cash.
Note: Enter debits before credits.
Date
January 01
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
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