Required information [The following information applies to the questions displayed below] Shahia Company bought a building for $90,000 cash and the land on which it was located for $122,000 cash. The company paid transfer costs of $12,000 ($5,000 for the building and $7,000 for the land). Renovation costs on the building before it could be used were $21,000. 2. Compute straight-line depreciation at the end of one year, assuming an estimated 10-year useful life and a $5,000 estimated residual value. Singhttine depreciation 11100
Required information [The following information applies to the questions displayed below] Shahia Company bought a building for $90,000 cash and the land on which it was located for $122,000 cash. The company paid transfer costs of $12,000 ($5,000 for the building and $7,000 for the land). Renovation costs on the building before it could be used were $21,000. 2. Compute straight-line depreciation at the end of one year, assuming an estimated 10-year useful life and a $5,000 estimated residual value. Singhttine depreciation 11100
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Please help me with all answers and calculation thanku
![Required information
(The following information applies to the questions displayed below]
Shahia Company bought a building for $90,000 cash and the land on which it was located for $122,000 cash. The
company paid transfer costs of $12,000 ($5,000 for the building and $7,000 for the land). Renovation costs on the building
before it could be used were $21,000.
2. Compute straight-line depreciation at the end of one year, assuming an estimated 10-year useful life and a $5,000 estimated
residual value.
Sanght line depreciation
No
A
S
Required information
[The following information applies to the questions displayed below.]
View transaction list
Shahia Company bought a building for $90,000 cash and the land on which it was located for $122,000 cash. The
company paid transfer costs of $12,000 ($5,000 for the building and $7,000 for the land). Renovation costs on the building
before it could be used were $21,000.
11100
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. (If no entry is required for a transaction/event, select "No
journal entry required" in the first account field.)
Transaction
1
C
View journal entry worksheet
Building
Land
Cash
General Journal
Debit
116,000
129,000
Credit
245,000
X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F531d22d6-41e3-4ab6-9b43-fd8dca83c239%2Fbecb9c32-b29b-44a6-b506-14e3ad369251%2Ffbmc4nt_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
(The following information applies to the questions displayed below]
Shahia Company bought a building for $90,000 cash and the land on which it was located for $122,000 cash. The
company paid transfer costs of $12,000 ($5,000 for the building and $7,000 for the land). Renovation costs on the building
before it could be used were $21,000.
2. Compute straight-line depreciation at the end of one year, assuming an estimated 10-year useful life and a $5,000 estimated
residual value.
Sanght line depreciation
No
A
S
Required information
[The following information applies to the questions displayed below.]
View transaction list
Shahia Company bought a building for $90,000 cash and the land on which it was located for $122,000 cash. The
company paid transfer costs of $12,000 ($5,000 for the building and $7,000 for the land). Renovation costs on the building
before it could be used were $21,000.
11100
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. (If no entry is required for a transaction/event, select "No
journal entry required" in the first account field.)
Transaction
1
C
View journal entry worksheet
Building
Land
Cash
General Journal
Debit
116,000
129,000
Credit
245,000
X
![[The following information applies to the questions displayed below.]
Shahia Company bought a building for $90,000 cash and the land on which it was located for $122,000 cash. The
company paid transfer costs of $12,000 ($5,000 for the building and $7,000 for the land). Renovation costs on the building
before it could be used were $21,000.
3. What would be the net book value of the property (land and building) at the end of year 2? (Amounts to be deducted should be
indicated by a minus sign.)
Net book value of property at end of Year 2
Net book value
$
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F531d22d6-41e3-4ab6-9b43-fd8dca83c239%2Fbecb9c32-b29b-44a6-b506-14e3ad369251%2F6nq8gj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
Shahia Company bought a building for $90,000 cash and the land on which it was located for $122,000 cash. The
company paid transfer costs of $12,000 ($5,000 for the building and $7,000 for the land). Renovation costs on the building
before it could be used were $21,000.
3. What would be the net book value of the property (land and building) at the end of year 2? (Amounts to be deducted should be
indicated by a minus sign.)
Net book value of property at end of Year 2
Net book value
$
0
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